Gold Prices Shatter Records Amid Global Turmoil

Gold markets have entered uncharted territory as the precious metal surged to an unprecedented level, breaching the landmark threshold of US$5,000 per ounce on the international market for the first time in history. The dramatic rise comes against the backdrop of deepening global economic volatility and escalating geopolitical tensions. While several international financial institutions had projected that gold might reach such heights at some point in 2026, the speed with which this milestone has been achieved—at the very start of the year—has taken many analysts by surprise.

The rally follows an extraordinary performance in 2025, when gold prices climbed by more than 70 per cent worldwide. That momentum has not only continued but accelerated into the new year. Market observers attribute the surge to a convergence of destabilising factors, including policy uncertainty in the United States, intensifying geopolitical conflicts, and widespread nervousness across global financial markets.

Heightened tensions between the United States and NATO over Greenland, the ongoing wars in Ukraine and Gaza, and persistent political instability across parts of Latin America have collectively undermined investor confidence. Adding to this uncertainty is the aggressive trade posture adopted by US President Donald Trump. His recent warning that Canada could face tariffs of up to 100 per cent if it enters into a new trade agreement with China has further unsettled global markets, reinforcing fears of renewed trade wars.

In such conditions, investors typically retreat from equities and other high-risk assets, favouring gold and other precious metals as safe havens. This shift has been evident not only in gold but also in silver, which has recorded a sharp rally of its own. For the first time, silver prices have crossed US$100 per ounce, following gains of nearly 150 per cent in the previous year.

Several structural factors have also strengthened gold’s appeal. Persistent inflationary pressures, a relatively weaker US dollar, and large-scale gold purchases by central banks worldwide have all contributed to rising demand. Moreover, growing expectations that the US Federal Reserve may resume interest rate cuts later this year have further bolstered investor appetite for non-yielding assets such as gold.

According to the World Gold Council, approximately 216,265 tonnes of gold have been mined throughout human history—an amount that would fill only three to four Olympic-sized swimming pools. Notably, a substantial share of this total has been extracted since 1950, driven by advances in mining technology and the discovery of new reserves. Estimates from the United States Geological Survey suggest that around 64,000 tonnes of gold may still remain underground, although future supply growth is expected to slow.

The global surge has also had a pronounced impact on domestic markets, where gold prices have reached historic highs following the latest upward revision.

Domestic Gold Prices (per bhori)

Analysts broadly agree that if global uncertainty persists at current levels, upward pressure on gold prices is likely to continue in the months ahead, reinforcing the metal’s status as the ultimate refuge in times of crisis.