Gold surged past $5,000 an ounce for the first time on Monday, extending a historic rally driven by geopolitical and policy uncertainty, a move that could increase gains for some Africa’s gold-producing economies like Ghana and Uganda.
Spot gold climbed 1.98 percent to $5,081.18 an ounce by 03:23 GMT, after touching an intraday high of $5,092.71, according to Reuters. US gold futures for February delivery rose 2.01 percent to $5,079.30 an ounce.
Last year, Bullion prices surged by 64 percent, up more than 17 percent year-to-date, driven by strong safe-haven demand, expectations of easier US monetary policy, sustained central-bank buying and record inflows into exchange-traded funds. China extended its gold purchases for a 14th consecutive month in December, underscoring official sector demand.
Analysts had previously flagged the $5,000 level as a key psychological threshold if global risk aversion intensified.
“The latest catalyst is essentially a crisis of confidence in the US administration and US assets,” said Kyle Rodda, senior market analyst at Capital.com to UNN Reports, citing policy uncertainty triggered by recent decisions by the Trump administration.
Read also:Uganda’s gold exports overtake coffee as bullion prices hit record highs
Last week, US President Donald Trump backed away from threats to impose tariffs on European allies linked to Greenland, before warning over the weekend that the US would slap 100 percent tariffs on Canada if it pursued a trade deal with China. He has also threatened 200 percent tariffs on French wines and champagne, deepening trade tensions.
“This administration has caused persistent disruption in how things are done, and investors are increasingly running to gold as the alternative,” Rodda said.
Africa spillovers
The rally is delivering tangible gains across Africa’s gold-producing economies.
In Ghana, the continent’s largest gold producer, elevated bullion prices helped support the cedi’s strong performance last year, making it Africa’s best-performing currency.
In Uganda, one of East Africa’s biggest economies, gold exports surged 75.8 percent in 2025, overtaking coffee as the country’s top export. Shipments generated $5.8 billion in export earnings, up from $3.3 billion in 2024, according to the Bank of Uganda, boosted by record prices and the entry of new dealers.
Beyond East and West Africa, the rally is reshaping trade flows. Saudi Arabia, the world’s biggest crude oil exporter, announced plans last week to begin purchasing Sudanese gold immediately, signalling a strategic shift as the conflict-hit country seeks to divert exports away from Dubai after years of sanctions, smuggling and revenue losses.
With geopolitical risks elevated and central banks still buying, analysts say gold’s surge could continue to reshape currency stability, export earnings and reserve strategies across Africa.