Gold Prices Reach Record High of Over $5,100 Amid Global Uncertainty

Gold Prices Reach All-Time High Amid Global Uncertainty

The spot gold price surged to an all-time high of $5,110.50 per ounce on Monday morning, according to market data. As of 06:56 GMT, the price was up 2.2 percent at $5,089.78 per ounce. US gold futures for February delivery also rose by the same amount to $5,086.30 per ounce.

Over the past year, gold prices have increased by 64 percent, their largest annual gain since 1979. This increase is attributed to a combination of factors, including safe-haven demand, easing monetary policy in the US, and robust central bank purchases, including China’s 14th consecutive month of buying in December.

The metal has set multiple record peaks over the past week and has risen more than 18 percent this year. The ongoing trade tensions between the US and other countries have contributed to the increase in gold prices, with many nations facing tariffs ranging from 10 to 50 percent. The Trump administration’s imposition of tariffs on rivals and allies has disrupted supply chains and raised business costs.

A weaker dollar has also played a role in the surge in gold prices, making it more affordable for holders of other currencies. Meanwhile, the Japanese yen has been under pressure due to concerns about possible intervention by the government, leading to a broader decline in the value of the dollar.

Source: Al Jazeera