Price of gold jumps above 5,000 US dollars for first time

The price of gold has lifted to another new record as its value continues to rally in the face of global uncertainty.

On Monday, the price of gold jumped above 5,000 US dollars (£3,662) an ounce for the first time ever.

It was priced at around 5,094 dollars (£3,730) an ounce later on Monday morning.

It comes after a strong rally throughout last year which saw the value of the precious metal rise by more than 60%.

Investors had bought into the metal in response to concerns over financial and geopolitical uncertainty, which remained elevated through the start of the year amid tensions between the US and Nato related to Greenland.

Threats of tariffs, which have since somewhat de-escalated, particularly concerned many investors.

Gold has strengthened in recent weeks as the US dollar has weakened, delivering its worst weekly performance since May last week.

A number of financial market experts have indicated that some countries had reduced their exposure to the dollar recently in the face of the recent geopolitical concerns.

Ipek Ozkardeskaya, senior analyst at Swissquote, said: “US and European equities rebounded following the de-escalation, though the recovery remains limited and fragile: the next shock is a matter of when, not where.

“The global order is shifting, and trust is gone.

“Against this backdrop, investors continue to flock to precious metals. Gold surged past the 5,000 dollar mark early Monday — a clear signal that risk appetite has not returned.”