Gold prices have made a new historic record, surpassing $5,000 per ounce for the first time, following heavy market volatility caused by conflicts between the U.S. and NATO over Greenland, and Donald Trump's extreme tax policies. Meanwhile, rising inflation and falling interest rates serve as key supporting factors.
Global gold prices officially broke through the $5,000 mark, roughly 155,425 baht per ounce, for the first time. This continues the strong surge after a more than 60% price jump in 2025. Investors still view gold as a "safe haven asset" amid global confidence crises.
The main driver behind this price rise is renewed tension between the United States and NATO allies concerning Greenland, combined with concerns over President Donald Trump's trade policies, who recently threatened to impose a 100% import tax on Canada if it proceeds with a trade agreement with China.
Not only gold, but silver also reached a record high, surpassing $100 per ounce last Friday (23 Jan), after prices surged nearly 150% last year, reflecting investors' demand for non-paper assets.
Beyond geopolitical issues, other supporting factors include persistently high inflation above normal levels and a weak U.S. dollar. Central banks worldwide are rushing to buy gold for reserves, while forecasts predict the U.S. Federal Reserve will cut interest rates twice more this year. Additionally, conflicts in Ukraine and the Gaza Strip, along with the U.S. arrest of Venezuelan President Nicolás Maduro, have intensified uncertainty.
Nicolas Frappe from ABC Refinery commented, "The best thing about holding gold is that it is not tied to anyone's debt like bonds or stocks. It is an excellent risk diversifier in a world full of uncertainty." Meanwhile, Ahmad Assiri, a strategist from Pepperstone, added that as government bond yields become less attractive due to falling interest rates, "people are turning to gold."
Besides buying from investors and central banks, demand in Asia also plays a significant role, particularly in India. Morgan Stanley revealed that Indian households hold gold worth as much as $3.8 trillion, equivalent to 88.8% of the country's GDP.
In China, the world's largest gold consumer, the upcoming Lunar New Year or the Year of the Horse in February is believed to bring good fortune through buying gold, causing a special surge in gold demand during this period.
,BBC