Gold surpasses $5,000 an ounce as uncertainty fuels demand

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Gold prices rose above $5,000 an ounce for the first time, continuing a historic rally that has pushed the metal up more than 60% in 2025, according to the BBC.

This surge is occurring amid growing geopolitical and financial uncertainty, driven by tensions over Greenland and concerns about U.S. trade policy, fueled by President Donald Trump’s threats to impose a 100% tariff on Canada if it makes a trade deal with China.

In such an environment, for thousands of investors worldwide, buying gold and other precious metals is one of the most popular ways to weather the global storm of uncertainty. As a result, the metal recorded its strongest annual gain since 1979 last year.

Lower interest rates have also increased demand for gold and silver, as lower bond yields prompt investors to seek other options. Meanwhile, central banks bought hundreds of tons of gold for their reserves last year, with Poland, Kazakhstan and Uzbekistan emerging as leaders.

Gold’s limited supply is another factor contributing to its appeal. According to the World Gold Council’s estimates, about 216,265 tons have been mined throughout human history, with another 64,000 tons remaining untapped.

On top of that, gold still has a big cultural role. In many countries, especially in China and India, people often buy gold as gifts at major celebrations. Morgan Stanley estimates that Indian households hold only $3.8 trillion in gold, which is almost 89% of the country’s GDP. In China, demand usually goes up around the Lunar New Year in February.