Gold price climbs to record high amid global uncertainty

The gold price has surged to historic highs, leaving investors wondering whether they have missed their chance or if there is still room to benefit from the rally.

Gold climbed above $5,000 USD an ounce on Monday and held near that level early Tuesday, marking a gain of more than $2,000 USD an ounce over the past 12 months.

The rally has been one of the strongest in decades and comes amid growing global economic and political uncertainty.

Much of the surge has unfolded over the past year, a period marked by rising trade tensions, increased government spending and concerns about inflation.

Investors have also been reacting to a weakening US dollar, ongoing questions about the future of NATO and higher defence budgets in several countries, including Canada.

Central banks around the world have been adding gold to their reserves, further supporting prices.

“Bull markets are associated with strong capital flows, and these capital flows are just dwarfing the finite physical supply,” Max Layton, a commodities analyst at Citigroup, told the Globe and Mail.

Gold broke through several major milestones during the rally, moving past $3,000 USD an ounce in February, $4,000 USD in October and now $5,000 USD.