Gold rally tops US$5,000 an ounce — is it too late to join?

Gold climbed above US$5,000 an ounce after a year-long rally, rising more than US$2,000 over 12 months, and Canadian indexes have been lifted by gains in gold and gold producers.

Gold has surged in the past year and hit a record above US$5,000 an ounce, prompting questions about what comes next. The rally is linked in the article to geopolitical and policy developments since the start of the U.S. president's second term, a softer U.S. dollar, inflation concerns and central-bank buying. Canadian stock indexes have been helped by the rise in gold and by strong performances from major gold producers. Analysts quoted in the article see possible further upside while also noting risks if global tensions ease. Key facts: - Gold rose above US$5,000 an ounce, a gain of more than US$2,000 over the past 12 months. - The article links the rally to U.S. policy shifts after the president's second term began, a falling U.S. dollar, inflation worries and broader geopolitical uncertainty. - Central banks have been adding gold to reserves since the financial crisis, increasing demand compared with pre-2008 levels. - Gold and gold-producer shares have helped push the S&P/TSX 60 and S&P/TSX Composite to record highs, with companies such as Agnico Eagle Mines and Barrick Gold among top performers. - Analysts cited include Citigroup's Max Layton, who pointed to outsized capital flows versus finite supply, and Scotiabank analysts, who raised target prices on several producers and noted equities lagging bullion but with room to move. Summary: The recent rally has already broadened exposure to gold across markets, including Canadian indexes and mining shares. Analysts see potential for further gains if supply tightens and demand holds, but they also note a risk premium that could shrink if geopolitical and policy pressures ease. Undetermined at this time.