Earlier this week, gold’s price hit an unprecedented high, rising above $5,000 per ounce. This extended the precious metal’s rally, which has been driven higher by escalating tensions between NATO and the United States over Greenland, compounding increasing anxiety about geopolitical risk and economic instability.
Markets have also been unsettled by President Donald Trump’s trade stance. Although he rolled back import duties on countries involved in the Greenland dispute this previous week, he later warned during the weekend that Canada could face tariffs of up to 100% if it proceeds with a trade agreement with the People’s Republic of China.
It is common knowledge that investors often turn to gold and other precious metals during periods of uncertainty, viewing them as reliable safe-haven assets. That demand has extended beyond gold, with silver rising above $100 per ounce towards the end of last week after posting gains of nearly 150% in 2025.
Interest in precious metals has been further supported by several additional factors, including a weak dollar, persistently high inflation, and increased purchases by central banks worldwide. Expectations that the U.S. Federal Reserve will implement further reductions in interest rates later this year have also boosted demand.
Ongoing conflicts in Gaza and Ukraine, along with the kidnapping of Venezuelan President Nicolás Maduro by the United States, have added to geopolitical instability, pushing prices higher.
A key attraction of gold lies in the metal’s limited supply. Figures from the World Gold Council show that roughly 216,265 tons of gold have ever been mined. Most of this has been extracted since the 50s, with the discovery of new reserves and advances in mining technology accelerating production.
Estimates from the U.S. Geological Survey expect that underground reserves can produce roughly 64,000 tons in the coming years, though output is expected to level off.
ABC Refinery’s global head of institutional markets, Nicholas Frappell, explained that gold differs from assets like bonds because its value isn’t tied to other variables. He adds that this independence made the precious metal a valuable tool for diversification, particularly during periods of heightened uncertainty.
Last year, the metal posted a standout performance, recording its strongest yearly rise since the late 70s as investors poured into precious metals. Heightened market anxiety, driven by issues such as concerns that AI stocks may be overvalued and President Trump’s tariff policies pushed the precious metal’s prices to a series of record levels.
As these tailwinds continue to drive gold’s upward price momentum, extractives companies like Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM) are poised to deliver greater shareholder value over the coming months.
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