International gold prices broke through the $5,200 per ounce mark on Wednesday, January 28, setting a new historical high. The demand for gold as a safe haven asset has sharply increased due to the ongoing uncertainties in the global economy and geopolitical landscape, continuing the strong upward trend since gold prices surged by 62% in 2025.
Just this Monday, gold prices had only just crossed the $5,100 mark, and within two days, it surged past the next integer level. This historic rally is primarily driven by central banks worldwide actively promoting “de-dollarization,” market turmoil caused by Trump’s second term tariff policies, and the increasing demand for safe-haven assets due to geopolitical conflicts.
Analysts at Societe Generale predicted on Monday that gold prices could reach $6,000 by the end of the year, describing this forecast as still being “conservative.”
In Shanghai and Hong Kong, the soaring gold prices have not deterred buyers. Zhao Jinhao, a gold salesperson at a jewelry market in Shanghai, mentioned in an interview on Tuesday, “There are still many people buying now because the general perception of gold is a long-term trend and the price is still on the rise.”
“From the 1980s when it was just over 20 yuan per gram to now breaking through a thousand yuan, the gold price has always been on an upward trajectory,” Zhao Jinhao said.
68-year-old Shanghai resident Wang Qiuqin also sees a continuous rise in gold prices, stating that this “crazy” upward trend prompted her to rush to the store to make a purchase.
“If this situation continues, gold prices are likely to go even higher. I can still mentally accept the current price, so I decided to buy some,” she said.
The intense demand has caused bottlenecks in the physical gold supply chain. Simon Littmann, the managing director of Swiss Investors Corporation Limited in Hong Kong, revealed to Reuters that the business volume in January this year was the busiest he has experienced in his approximately 20-year career.
“Last year may have been the second busiest year for our business, and this year looks to be even busier, but we are facing supply issues,” he stated.
Littmann added that the supply of small gold bars is delayed due to strong demand, and refineries worldwide are rushing to increase production to meet the needs of the retail market.
However, the historic high prices have also attracted some individuals to cash in. In Central Hong Kong, dozens of citizens lined up outside gold shops, waiting to sell their gold jewelry and bars, with some enduring hours of waiting before being able to enter.
Retiree Cherry Tam sold gold jewelry she received as a wedding gift decades ago. She commented, “Gold prices will definitely continue to rise. With society so chaotic and unstable now, combined with the economic downturn, selling jewelry can at least bring back some money for spending.”
Master goldsmith Dick Liu, aged 79 and with over 50 years of experience, believes that the unstable international situation will continue to support this unprecedented boom.