Gold settles above $5,000 as silver posts largest daily gain on record

Gold futures for February delivery gained 2.10% to settle at $5,082.5 per ounce

Gold prices rose at the close of trading on Monday, surpassing the $5,000 mark for the first time on record, as investors increased their demand for safe-haven assets amid escalating global political tensions.

Gold futures for February delivery gained 2.10%, or $102.8, to settle at $5,082.5 per ounce, marking their seventh record close since the start of the year.

Silver futures for January delivery surged 14% to $115.8 per ounce, posting a record close and the largest single-day increase ever in dollar terms.

The rally was supported by heightened global economic and geopolitical uncertainty, as policies pursued by US President Donald Trump have prompted investors to steer clear of riskier assets, particularly US assets and the dollar.

In the latest geopolitical escalation, Trump said he would impose 100% tariffs on Canada if it finalizes a trade agreement with China.

Investors also focused on the possibility that the United States could support Japanese government intervention in currency markets to bolster the yen, adding further pressure on the dollar and underpinning gold prices.

Meanwhile, attention has turned to the Federal Reserve’s meeting scheduled for later this week, where interest rates are widely expected to be left unchanged, as the Trump administration steps up efforts to undermine the central bank’s independence and push for easier borrowing conditions.