Another day another high: Gold surges past $5,000 as investors seek shelter from global risks

Core Insights - Gold prices have reached a new all-time high, surpassing $5,000 per ounce, driven by increased demand amid geopolitical tensions and global fiscal risks [1][2] Group 1: Price Movement - Spot gold prices and U.S. gold futures for February have increased by 1.2%, trading at $5,042 and $5,036 per ounce, respectively [1] - Analysts at Union Bancaire Privée anticipate gold will continue to perform strongly, with a year-end target price of $5,200 per ounce [3] Group 2: Demand Drivers - The surge in gold prices is attributed to heightened geopolitical risks, particularly related to regions like Greenland and Venezuela, which enhances gold's status as a safe-haven asset [2] - Goldman Sachs notes that the demand for gold has expanded beyond traditional channels, with Western ETF holdings increasing by approximately 500 tonnes since the start of 2025 [4] Group 3: Central Bank Activity - Central bank purchases of gold are robust, averaging around 60 tonnes per month, significantly higher than the pre-2022 average of 17 tonnes, with emerging-market central banks increasing their gold reserves [6] - Goldman Sachs has raised its December 2026 gold price forecast to $5,400 per ounce, citing persistent hedges against global macro and policy risks [5][6]