Historical Record Gold Price During a Period of Transition and Geopolitical Instability

TEHRAN (Defapress) - Late Sunday, gold prices topped $5,000 per ounce for the first time. The dramatic rise was the result of investors flocking to the safe-haven asset amid growing concerns about the deterioration of U.S. relations with key allies from Europe to Canada.

U.S. President Donald Trump has shaken markets with his unexpected policies. Gold prices have jumped 15 percent in the first 26 days of 2026, extending a historic rally from 2025, when prices rose 65 percent, the biggest annual gain since 1979.

Gold is often seen as a safe haven in times of uncertainty and a gauge of market anxiety. The recent surge has been driven largely by Trump’s actions, from threatening tariffs on NATO allies over Greenland, which he later called off, to military action against Venezuela and criminal investigations into Federal Reserve Chairman Jerome Powell.

These events have driven investors to invest in precious metals. In addition, demand has been boosted by a weaker U.S. dollar, higher-than-expected inflation, expectations of a rate cut by the Federal Reserve this year, and gold purchases by global central banks.

Silver, another safe-haven asset, has also been riding the wave of gold bullion. Silver prices rose 4.5 percent on Sunday to $107.8 an ounce. Like gold, silver is on track to post its best performance since 1979, up 141 percent in 2025. Analysts believe the upward trend will continue as volatility continues to weigh on the market.

Ahead of the record-breaking race, Goldman Sachs analysts raised their forecast to $5,400 per ounce, citing private sector interest in gold due to “global policy instability.” The research note, published last week, reflects the market’s positive view of the changes.

Less than a month into 2026, Trump’s divisive and contradictory policies have exacerbated geopolitical instability and shaken markets. Gold prices jumped after the US seized Venezuelan President Nicolas Maduro and Trump's threat against Iran amid American-Zionist riots in that country.

Trump also ramped up his rhetoric about annexing Greenland and threatened a global trade war by imposing heavy tariffs on European allies who opposed his plans to buy the Danish territory. Although Trump abruptly backed down and claimed a deal had been reached, markets remain wary of the White House’s unpredictability. On Saturday, Trump threatened to impose a 100% tariff on Canadian imports if Canada did a trade deal with China, something Ottawa has said it will not do.

Domestically, Trump has resumed his attacks on Federal Reserve Chairman Jerome Powell. Federal prosecutors opened a criminal investigation against him earlier this month, raising questions about the central bank’s political independence.

The collective upheaval has spooked investors and sparked a flight to precious metals. The resulting volatility-fueled boom has pushed gold and silver to new record highs. Analysts predict that prices could rise even higher if the situation continues.