Gold Hits $5,100 Record Peak: What the Surge Means for Investors and Businesses in Oman
Gold prices continued their unprecedented rally on Monday, surging past $5,100 an ounce as central banks and investors sought safe-haven assets amid geopolitical tensions and market volatility linked to U.S. President Donald Trump.
By 10:30 GMT, spot gold had risen 2.1% to $5,087.39 an ounce, after reaching an all-time high of $5,110.50. U.S. gold futures for February delivery increased similarly, closing at $5,085.60.
In 2025, gold recorded a remarkable 64% annual gain—the largest since 1979—breaking numerous records driven by strong safe-haven demand, U.S. monetary policy easing, heavy central bank acquisitions, and record inflows into exchange-traded funds. Prices have climbed about 18% since the beginning of this year.
Ole Hansen, head of commodity strategy at Saxo Bank, attributed the surge primarily to uncertainties created by President Trump, compounded by investor fear of missing out. His recent tariff threat, including a potential 100% tariff on Canada if it enters a trade agreement with China, intensified market concerns.
The Japanese yen reached a two-month high against the U.S. dollar amid speculation of possible U.S.-Japan currency intervention, while investors reduced dollar holdings ahead of the Federal Reserve’s upcoming meeting and potential announcement of a new Fed chair. The dollar index dropped to a four-month low, increasing the appeal of dollar-priced metals for international buyers.
Analysts predict gold may continue climbing this year, potentially reaching $6,000 due to escalating global tensions and sustained demand from central banks and consumers. Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany, warned that further gains could occur in stress scenarios if confidence in currencies or financial assets weakens, although sharp interim corrections are possible.
According to Reuters technical analyst Wang Tao, spot gold has surpassed resistance at $5,070 and is likely to rise into a range between $5,154 and $5,206 an ounce, with a potential climb to $5,427.
Silver also reached new highs, with spot prices hitting $110.11 an ounce and last up 6.2% at $109.35. Silver broke above $100 on Friday following a record 147% gain in 2025, propelled by retail demand, momentum buying, and prolonged physical market tightness.
Platinum celebrated a 4.1% increase to $2,881.75 an ounce after peaking at $2,897.35, while palladium climbed 5.1% to $2,111.93, touching a more than three-year high of $2,122.45.
These developments highlight the sustained strength and investor appetite in the precious metals market amid ongoing economic and geopolitical uncertainties.
Special Analysis by Omanet | Navigate Oman’s Market
The relentless surge in gold prices, driven by geopolitical risks and monetary easing, signals a strategic opportunity for businesses and investors in Oman to diversify portfolios by increasing exposure to precious metals as safe-haven assets. However, the volatility and potential for sharp corrections underscore the need for cautious, timing-aware investment strategies to maximize gains while managing risks. Smart entrepreneurs should also consider leveraging Oman’s position in global commodity markets to capitalize on rising demand for gold and other metals.
