By: Economy Middle east

Gold has achieved a historic milestone on Monday by surpassing the $5,108 mark, while silver has concurrently climbed to around $108 per ounce (silver is currently trading at $106.76). This remarkable rise reflects a broader trend as investors seek refuge in safe-haven assets amidst rising geopolitical tensions globally.

Record-breaking ascent

As of today, the market witnessed spot gold climbing 1.58 percent to reach $5,067.21 per ounce, while February U.S. gold futures saw a 1.68 percent jump to $5,100.34. These gains contribute to a year-to-date increase of over 16 percent. Looking ahead, analysts suggest that the metal could peak near $5,500 later this year. 

In the UAE, gold rates surged, with 24-carat gold rising AED9.70 to AED610.75 and 22-carat gold edging up AED9.25 to AED565.75. Additionally, 21-carat gold increased by AED8.75 to AED542.25, while 18-carat gold added AED7.50 to reach AED464.75.

Catalysts for the rally

The current momentum is fueled by a combination of macroeconomic and political drivers. Investor sentiment is being shaped by escalating tensions involving the United States and NATO, alongside the continued easing of U.S. monetary policy. Furthermore, gold is seeing massive support from central bank acquisitions—particularly from China—and record-breaking inflows into exchange-traded funds (ETFs).

Geopolitical and broader market impact

Global instability remains a primary engine for this growth. The protracted conflict between Russia and Ukraine continues to generate uncertainty, while emerging trade disputes involving Canada have added to market jitters. This bullish environment has extended to other precious metals as well. Platinum has risen 3.40 percent to $2,834.80 per ounce, and palladium has surpassed the $2,041.00 mark following a 2.31 percent increase. As 2025 unfolds, the outlook for the entire sector remains highly optimistic.