Gold Prices Surpass 5,000 Dollars, Setting a Record

Historic Rise in Gold Prices

Geopolitical uncertainties and growing loss of confidence in the US administration have driven gold prices to record levels. On Monday, gold reached $5,071.96 per ounce, rising during the day to $5,085.50, marking the highest value ever recorded.

Spot Gold and Futures

Spot gold is trading at $5,071.96, up by %1.79, while February futures for US gold also saw a similar increase, rising to $5,068.70.

Reasons for the Rise

The increase in gold prices is supported by an expected %64 value increase throughout the year 2025. The rise in safe-haven demand, loosening monetary policies in the US, and strong purchases by central banks are behind this increase. Additionally, China's 14 consecutive months of gold purchases are strengthening the rally.

Analysts' Opinions

Capital.com senior market analyst Kyle Rodda attributes the recent rise to a crisis of confidence in the US administration. He notes that the uncertain decisions of the Trump administration have led investors to seek alternative safe havens.

Weakening Dollar and Gold Demand

As the dollar loses value globally, investors have started to reduce their dollar positions ahead of this week's Fed meeting. A weakening dollar makes gold more attractive to investors trading in other currencies.

Future Expectations

Metals Focus Director Philip Newman predicts that gold prices could reach $5,500 in the upcoming periods. He states that any potential profit-taking will be short-term, emphasizing that the rise in the gold market could continue.

Rise in Other Precious Metals

Besides gold, there is a noticeable increase in other precious metals as well. Spot silver rose by %4.57 to $107.65. Additionally, spot platinum reached $2,857.41, and spot palladium climbed to $2,074.40, attracting investors' attention. Silver had caught the spotlight last week as it broke the $100 level for the first time.