Gold’s Meteoric Rise: A New Era of Precious Metal Valuation

Gold reached unprecedented heights, exceeding $5,000 per ounce as geopolitical tensions drove investors towards safer assets. Economic uncertainties, along with U.S. monetary easing and central bank gold acquisitions, propelled this rally. Analysts predict further increases, with potential highs nearing $6,400 by year-end.

Gold surged to unprecedented levels, surpassing the $5,000 mark per ounce on Monday as investors sought refuge in the precious metal during rising geopolitical tensions. The ongoing friction between the United States and NATO over Greenland has significantly contributed to gold's phenomenal ascent this year, amid expectations of heightened financial and political instability.

The precious metal has appreciated by 64% in 2025, fueled by U.S. monetary policy relaxation, strong central bank demand, particularly from China, which extended its gold purchasing into its fourteenth consecutive month in December, and unprecedented inflows into exchange-traded funds.

Independent analyst Ross Norman offers an optimistic outlook, suggesting gold could reach a peak of $6,400 per ounce, with an overall annual average of $5,375.

(With inputs from agencies.)