NEW YORK — Gold prices surged past $5,100 per ounce on Monday, extending a historic rally that has seen the yellow metal more than double over the past two years as investors sought refuge from escalating geopolitical and trade-policy uncertainty. The move accelerated after President Trump announced 15% blanket tariffs on all imports following the Supreme Court's decision to void his earlier reciprocal tariff structure, stoking fears of a prolonged global trade conflict and a potential slowdown in U.S. economic growth.
Spot gold touched $5,130 per ounce in early trading before settling around $5,100, while silver climbed to approximately $85 per ounce, continuing its own powerful rally. The U.S. dollar index fell broadly, with the Japanese yen, Swiss franc, and euro all strengthening against the greenback as investors reassessed the attractiveness of U.S. assets. A weaker dollar typically acts as a tailwind for gold, which is denominated in the currency.
The backdrop for gold's advance extends well beyond Monday's tariff drama. Fourth-quarter U.S. GDP, reported last week, came in at a disappointing annualized rate of 1.4%, far below the prior quarter's 4.4% pace and below the market consensus of 2.5%. Meanwhile, the core personal consumption expenditures price index rose 3% in December — still meaningfully above the Federal Reserve's 2% target — leaving the central bank in a difficult position of slowing growth and sticky inflation.
Tensions between the United States and Iran have also kept geopolitical risk elevated. Reports indicate that President Trump has told advisers he may consider a larger military strike if diplomatic efforts fail to halt Iran's nuclear program. Talks are scheduled to resume in Geneva later this week, but the scale of the U.S. military deployment in the region — described by analysts as reminiscent of the pre-2003 Iraq buildup — has unnerved markets and supported demand for gold as a crisis hedge.
Gold and silver mining equities surged in response. Shares of major producers including Newmont, Barrick Gold, Agnico Eagle, and Kinross Gold all opened sharply higher, while silver miners such as First Majestic Silver and Hecla Mining posted double-digit gains. The SPDR Gold Shares ETF and iShares Gold Trust both saw elevated volume as institutional and retail investors rotated into hard assets.
Analysts at several major institutions have raised their gold price targets in recent weeks, with some citing the combination of central bank buying, de-dollarization trends, and geopolitical risk as structural drivers that may sustain elevated prices even if trade tensions eventually ease. The VIX, Wall Street's so-called fear gauge, fell to 19.09 in Friday's session but was expected to tick higher as Monday's selling pressure intensified, further supporting demand for defensive assets.