Gold surged to above US$5,000 ($7,233) an ounce on Monday, following silver's rise above US$100 ($144) an ounce for the first time last Friday.
The record-breaking price of gold extends a historic rally as investors piled into the safe-haven asset amid rising geopolitical uncertainties.
In 2025, the price of gold soared 64 per cent, supported by sustained safe-haven demand, the easing of US monetary policy, and record inflows into exchange-traded funds.
China also extended its gold-buying spree for a 14th month in December, which also contributed to gold's price rise.
"[The latest catalyst] is effectively this crisis of confidence in the US administration and US assets, that was set off by some of the erratic decision-making from the Trump administration last week," Kyle Rodda, senior market analyst at Capital.com, said.
"This Trump administration has caused a permanent rupture in the way things are done, and so now everyone's kind of running to gold as the only alternative."
Over the past week, Donald Trump has announced swift policy changes, including abruptly stepping back on plans to seize Greenland, threatening to impose a 100 per cent tariff on Canada over its trade deal with China, and a 200 per cent tariff on French wines to pressure France to join the US president's Board of Peace initiative.
Silver also hit a record of US$108.60 ($157.10) per ounce last Friday, building on its 147 per cent rise last year. This was driven by strong investment demand and a persistent supply shortage in the market.
More gains on the way
Metals Focus director Philip Newman predicted the price of gold will continue to grow in the wake of the fresh record.
"Our current forecast suggests that prices will peak at around US$5,500 ($7,952) later this year," Newman said.
"Periodic pullbacks are likely as investors take profits, but we expect each correction to be short-lived and met with strong buying interest."
Ross Norman, an independent analysis, predicts gold could reach a high of US$6,400 ($9,257) an ounce this year, with an average of US$5,375 ($7,774).
Meanwhile, the Japanese yen rose and the US dollar slipped early on Monday, with investors cautious ahead of this week's US Federal Reserve meeting.
A weaker US dollar makes greenback-priced gold more affordable for holders of other currencies.
— With reporting by the Reuters news agency.
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