Gold exceeds $5,100 per ounce, reaching a new historic high

Gold prices continued their strong rise during Monday's trading, with the yellow metal breaking through the $5,100 per ounce barrier to set a new record high, amid growing investor demand for gold as a safe haven amid escalating global geopolitical and economic uncertainty.

Strong gains for gold since the beginning of the year

Gold recorded a series of consecutive historic highs last week, with prices rising more than 18% since the beginning of the year, directly reflecting strong buying momentum and growing institutional and individual demand for the precious metal.

Crisis of confidence in US assets supports gold

One of the main factors supporting the recent rise in gold is the growing crisis of confidence in the US administration and US assets, which has been exacerbated by the volatile decisions taken by US President Donald Trump's administration over the past week, reinforcing investor fears and pushing them towards safe-haven assets.

Unpredictable trade policies raise global risks

Markets were thrown into turmoil after Trump suddenly backed down from his threat to impose tariffs on European allies, which had been used as leverage in the Greenland issue.

The US president also escalated his rhetoric over the weekend, threatening to impose 100% tariffs on Canada if it entered into a trade agreement with China.

The escalation did not stop there, as Trump also threatened to impose 200% tariffs on French wine and champagne in an attempt to pressure French President Emmanuel Macron to join his peace council initiative.

Concerns about the future of the international system

This trend raises concerns among some observers that the role of the United Nations as the main international platform for conflict resolution could be undermined, despite Trump's recent statements that he remains committed to cooperating with it, which has increased political uncertainty on the world stage.

Gold expected to reach $6,000 per ounce

In light of these developments, a number of analysts expect gold prices to continue to rise in the coming period, with predictions that they will reach $6,000 per ounce during the current year, driven by escalating global tensions and continued strong demand for the precious metal.

Multiple factors support the upward trend in gold

The current rise in gold is no longer driven solely by geopolitical factors, but is the result of a combination of interrelated factors, most notably:

• Declining confidence in the US administration and dollar-denominated assets.
• Trade policy turmoil and widening fiscal deficits and public debt.
• Continued weakness of the US dollar.
• Central banks, financial institutions, and individual investors continuing to increase their purchases of gold.