Gold prices breached $5,000 per ounce for the first time on Monday, and subsequently moved above $5,100 as well.
Meanwhile, there is no stopping silver’s rally as prices surged past $100 per ounce and hit a record high of $112.330 per ounce.
On the other hand, oil prices dipped on Monday after strong gains in the previous sessions.
Base metals prices were mostly higher, with volatility remaining a defining feature across the complex, according to Neil Welsh, head of metals market at Britannia Global Markets.
Gold and silver hit historic highs
Driven by international political tension, gold surged to a record high of over $5,100 on Monday, with investors flocking to the precious metal as a safe haven.
Silver and platinum similarly reached all-time highs.
The sustained weakness of the US dollar, which remained near a multi-month low, also bolstered prices.
This depreciation made dollar-priced assets more accessible to those holding other currencies.
Silver reached a new all-time high, briefly exceeding $110 per ounce.
This represented a 22% increase in value since last Wednesday, prompting some commentators to suggest this signals a new era for precious metals.
“Time will tell. It’s become very difficult to trade,” said David Morrison, senior market analyst at Trade Nation.
The air is very thin up here above $100. And anyone looking for a reversal and who’s actually shorted silver has been stretchered off the pitch so far.
A key focus for investors was the potential for imminent, coordinated currency intervention by US and Japanese authorities.
Adding to geopolitical tensions, US President Donald Trump announced on Saturday a threat to impose a 100% tariff on Canada should it proceed with a planned trade deal with China.
The upcoming Federal Reserve meeting, where the central bank is widely anticipated to keep interest rates unchanged, is currently overshadowed by a criminal investigation initiated by the Trump administration against Fed Chairman Jerome Powell.
Pressure from Trump on Powell to lower interest rates could bolster non-yielding gold.
Gold has already seen significant gains, rising nearly 18% this year, following a substantial 64% increase in 2025.
Last year was historic for the metal, with its price surpassing the major benchmarks of $3,000/oz and $4,000/oz for the first time.
Oil dips
Oil prices saw a slight decline on Monday, maintaining a level after the substantial gains observed late last week.
This consolidation occurred as investors assessed the conflicting factors of a potential oversupply and elevated geopolitical tensions, while also anticipating outcomes from a key Federal Reserve policy meeting scheduled for later in the week.
Oversupply concerns have resurfaced, putting pressure on US crude prices.
This comes after the latest US Energy Information Administration (EIA) data revealed a larger-than-anticipated increase in crude inventories last week, building by 3.6 million barrels.
The rising inventories appear to be offsetting the impact of continued geopolitical risks, according to Morrison.
At the time of writing, the price of West Texas Intermediate crude oil was at $60.47 per barrel, down 1%, while Brent was at $64.58 a barrel, down 0.8%.
On Friday, a significant rise in geopolitical risk premiums drove both benchmarks up by over 2%.
Fears of disrupted crude shipments from a major producing region pushed markets to the edge.
This reaction followed a US signal of heightened military posturing toward Iran.
Tensions escalated after Trump announced that a US naval “armada,” including an aircraft carrier group, was being deployed to the Middle East.
Geopolitical tensions recently stirred by Trump concerning Greenland have also impacted oil markets, contributing to the unsettling of broader financial markets.
“Crude prices continue to consolidate around resistance levels,” Morrison said.
While crude has broken out of the downward-sloping trading channel which had built since the summer, it has not yet managed to break out decisively to the upside.
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