Spot gold has surpassed the $5,000 per ounce threshold for the first time, reaching $5,012.11 in early 2025. This milestone marks a significant $700 increase since the start of the year, driven by geopolitical tensions and evolving monetary policies. The precious metal's ascent from below $1,800 in late 2022 highlights a shift in asset allocation and macroeconomic sentiment. Key factors contributing to this rally include increased demand from central banks like the People's Bank of China and the Reserve Bank of India, as well as concerns over currency devaluation. The breach of previous highs has also triggered algorithmic buying, further accelerating the price rise. Gold's performance has outpaced other asset classes, underscoring its role as a hedge against financial volatility and systemic risk.