Doha: Gold prices continued their record-breaking rally, supported by strong safe-haven demand from individuals, governments, and central banks. Prices of the yellow metal in global markets surpassed the USD 5,100-per-ounce threshold on Monday for the first time in history.
According to Qatar News Agency, This surge marks gold's largest annual gain since 1979, after rising by 64 percent during 2025, driven by demand for safe assets and robust purchases by central banks. This came at a time when other metals, including silver, copper, and tin, have also recorded record levels since the beginning of the year.
Global financial markets have experienced heightened tension amid growing concerns over the possibility of another US government shutdown, following Democrats' threats to cut funding for the Department of Homeland Security after a federal immigration agents' shooting incident in Minneapolis over the weekend.
Analysts believe that gold will remain in strong demand as a safe haven as long as global market uncertainty persists and central bank and individual demand remain robust. They expect further record highs, potentially reaching around USD 6,000 per ounce during the year, while noting the likelihood of short-term corrections due to profit-taking, which are expected to be limited and met with strong buying interest.
In this context, Managing Director of Metals Focus, Philip Newman, stated that periodic pullbacks are likely as investors take profits, but stressed that any correction would be short-lived and met with strong buying interest.
Experts also noted that average monthly gold purchases by central banks could reach around 60 tonnes, while holdings of gold-backed exchange-traded funds in Western countries have increased by about 500 tonnes since the beginning of 2025, exceeding expectations linked to potential interest rate cuts in the United States. Goldman Sachs expects US interest rates to be cut by 50 basis points in 2026.
Demand for gold has been at record levels for several months, extending from individuals to major financial institutions and central banks worldwide.
Gold is considered a unique asset that combines investment value with advanced technological applications, in addition to its role in enhancing financial stability, creating wealth, supporting industrial markets, and preserving cultural traditions associated with it.
Economic, social, and geopolitical trends have contributed to significant shifts in global gold demand. With rising global tensions and uncertainty in financial markets, institutional investors and individual savers have shown increased interest in the yellow metal, supported by easy access to physical gold and gold-backed funds.
Central banks have continued to purchase gold steadily since the global financial crisis, with these trends accelerating in recent years.
In China and India, rising wealth has boosted individual demand for bullion, coins, and jewelry, reinforcing gold's economic and cultural significance across Asia.
Gold continues to play a central role in the global economy, as a precious metal that preserves its value and purchasing power over time, making it a safe and reliable option for investors seeking to protect their wealth from market volatility.
Many countries import and export gold on a large scale, while China is considered one of the world's largest producers and consumers of gold, accounting for around 10 percent of global production, followed by Russia, Australia, Canada, and the United States.
In 2024, these countries maintained their dominance, with global gold mine production rising to record levels to meet growing demand.
Gold is more than just a precious metal; it is a symbol of wealth, a hedging instrument, and a haven that has withstood the test of time and major economic fluctuations.
It has retained its status as an indispensable strategic asset in investors' portfolios and central bank reserves, making it the only "currency" that cannot be printed and a strong safeguard against geopolitical and financial crises. The value of gold lies in a unique combination of physical and chemical properties: its relative scarcity prevents industrial-scale synthetic production, ensuring supply stability compared to paper currencies; it is resistant to corrosion and rust, retaining its quality even after thousands of years. Gold also offers high flexibility in form without losing its intrinsic value, whether as bullion, coins, or jewelry
Historically, gold evolved from an ornamental material into the foundation of the global monetary system and a core component of foreign exchange reserves, and today it serves as a safety valve for the global financial system. Its role becomes particularly evident during periods of inflation, as it tends to rise when the purchasing power of paper currencies declines, and it functions as a haven for investors during wars and international conflicts.
Despite its unique advantages, gold faces contemporary challenges, including competition from digital assets and cryptocurrencies, rising environmental and operational costs of mining, and price sensitivity to interest rate decisions by the US Federal Reserve. Nevertheless, it remains a cornerstone of the global financial system, given its unparalleled ability to preserve value across generations and its role as a refuge that provides reassurance to investors and states alike in a world marked by rapid volatility and economic uncertainty.