Gold Surges Past $5,000 Amidst Global Uncertainty

The price of gold soared above $5,000 an ounce for the first time ever, marking a significant milestone in a historic rally that saw the precious metal's value increase by more than 60% in 2025, according to BBC Business. This surge comes amidst growing financial and geopolitical uncertainty, fueled by escalating tensions between the U.S. and NATO over Greenland, as reported by Reuters.

U.S. President Donald Trump's trade policies have also contributed to market anxieties. On Saturday, Trump threatened to impose a 100% tariff on Canada if it pursued a trade deal with China, further unsettling investors, BBC Business noted. Gold and other precious metals are traditionally viewed as "safe-haven assets," attracting investors during times of instability. Silver also experienced a surge, topping $100 an ounce for the first time on Friday, building on the trend of precious metals as reliable investments.

Canadian Prime Minister Mark Carney addressed the trade concerns, stating on Sunday that Canada has no plans to pursue a free trade agreement with China, Fortune reported. Carney clarified that his recent agreement with China merely cuts tariffs on a few sectors that were recently hit with tariffs. This statement was in response to Trump's claim that China was "successfully and completely taking over the once Great Country of Canada," as posted by the U.S. President. Carney emphasized that under the free trade agreement with the U.S. and Mexico, there are commitments not to pursue free trade agreements with nonmarket economies.

In other economic news, Liberal Democrat leader Sir Ed Davey advocated for the government to issue war bonds to accelerate UK defense spending. Davey told the BBC that these bonds would signal to markets the UK's commitment to defense. The proposed bonds would allow the public to loan money to the government over a two-to-three year period, earning the same interest as standard government bonds. Davey's party estimates the bonds could raise up to £20 billion for the military, providing the public with a chance to "support patriotically our defence." A government spokesperson stated that "new debt instruments" were under review.