Gold prices shattered records on Monday, surging past $5,000 an ounce for the first time as investors flocked to the safe-haven asset amid escalating global tensions and concerns over fiscal sustainability.

Spot gold jumped 1.2% to $5,042, while U.S. gold futures for February reached $5,036. The rally extends a historic run fueled by geopolitical flashpoints from Greenland to the Middle East and Venezuela, reinforcing gold's role as a hedge against uncertainty.

"Gold should enjoy another strong year, reflecting ongoing central bank and retail investment demand," analysts at Union Bancaire Privée stated, setting a year-end target of $5,200 per ounce.

The demand base has broadened significantly. Goldman Sachs noted that Western ETF holdings have grown by roughly 500 tonnes since early 2025, while high-net-worth families are increasingly using gold to hedge macro-policy risks. The investment bank recently raised its December 2026 forecast to $5,400 an ounce, up from $4,900.

Central banks continue to be major buyers, with purchases averaging around 60 tonnes per month—far above the pre-2022 average—as emerging-market institutions diversify reserves.

Silver also rallied sharply, gaining 3% to $106.1 per ounce, supported by both safe-haven and industrial demand.

Analysts attribute the sustained momentum to "sticky" hedges against global fiscal and policy risks that are unlikely to resolve quickly, ensuring gold’s appeal remains elevated throughout 2026.