Gold soars above $5,300 per ounce

The record rally has been attributed to geopolitical tensions and a plummeting US dollar

The price of gold has continued to rally on Wednesday, reaching above $5,300 per ounce to an all-time high. The rally has been attributed to strong safe-haven demand amid geopolitical uncertainty and a weakening US dollar.

On Wednesday, spot gold prices rose to $5,319 as of 19:50 GMT, extending the precious metal’s record-breaking streak. Prices have gained more than 20% since the start of the year, building on last year’s substantial gains.

According to analysts, the rally has been supported by a combination of global uncertainty and economic factors, including tensions in the Middle East, increased central bank buying, as well as US President Donald Trump’s military intervention in Venezuela and his push to acquire Greenland, which have boosted demand for tangible assets. The US dollar’s nosediving to a four-year low this week has reinforced gold’s appeal as a hedge against instability.

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Market watchers are increasingly bullish on gold. Forecasts from the London Bullion Market Association suggest prices could reach $6,000 to $7,000 per ounce this year. Analysts at Bank of America project the $6,000 mark as early as spring.

The rally has brought Russia substantial financial gains and has in fact largely offset the roughly $300 billion in central-bank reserves frozen in the West. Unlike the funds immobilized abroad, Russia’s domestically held gold reserves can be sold or pledged as collateral, providing Moscow with greater financial flexibility.

Russia’s reported central-bank gold reserves totaled 74.8 million troy ounces (2,326.54 metric tons) at the start of 2026. The market value of that holding climbed nearly 67% in 2025, from $195.7 billion to $326.5 billion.