‘Everybody just wants security’: Gold rush smashes another record

John Vennavally-Rao examines the impact on the markets amid U.S. President Donald Trump's continued threat to annex Greenland.

Justin Yampolsky has been in awe watching the price of gold climb steadily higher.

Yampolsky is the managing director of Muzeum, a Toronto-based company that buys and sells precious metals, including old jewelry. He says that, historically, sharp increases in gold prices are often followed by pullbacks. But he admits he’s been saying that for weeks.

“I’ve been proven wrong yet again,” he said, referring to Tuesday’s price jump. “It just keeps on going up further and further.”

Gold set another record on Tuesday, pushing above US$4,750 an ounce. It is already up about nine per cent this year after rising 66 per cent in 2025.

The rally has been fuelled by growing economic and political uncertainty, including the latest tariff threats from U.S. President Donald Trump and his recent comments about Greenland.

“It is really showing how economically uncertain the entire world is,” Yampolsky said. “Nobody knows what is going to happen. Everybody is kind of hedging their bets, and everybody just wants security however they can find it.”

Gold has long been viewed as a safe haven during periods of economic and geopolitical turmoil, something Yampolsky says has now intensified.

“For sure, Trump is a huge factor,” he said.

Gold prices jumped by US$100 an ounce on Tuesday as investors continued to move into the yellow metal.

The broader rise over the past year has been driven, in part, by central banks increasing their gold reserves and reducing their reliance on the U.S. dollar. Concerns about inflation, geopolitical tensions and government debt have also contributed.

But Tuesday’s spike was widely seen as being largely Trump-driven. Yampolsky said he did not expect gold to reach these levels until next year and has been surprised by the speed of the increase.

The surge has also prompted people to bring in old jewelry to see what it might be worth.

“People are digging through their basements and attics to see what they have,” Yampolsky said. “It is reaching an all-time high, and they want to cash in on that.”

For Canada, higher gold prices mean the metal is now among the country’s most valuable exports next to oil. Canada is the world’s fourth-largest gold producer, and many Canadian mining companies have seen their share prices rise sharply.

Near Red Lake, Ont., the Madsen gold mine restarted operations last summer under new ownership.

“To be a brand-new gold miner in this market is amazing,” said Gwen Preston, vice-president of communications for West Red Lake Gold.

The mine employs about 280 people. It first opened in the 1930s, but closed for several decades during periods of lower gold prices. Under new ownership in 2023, Preston said the company expected the gold market to strengthen, and prices have gone up significantly since then.

West Red Lake Gold hopes to produce about 50,000 ounces at the mine this year and returned to commercial production earlier this month.

“We wanted to be that rare company that was putting a new gold mine into production when the gold bull market happened,” Preston said. “Thankfully, we were right about that prediction of a bull market.”

Looking ahead, some bank analysts predict gold could reach US$5,000 an ounce by the end of the year. Others point to gold’s long history of volatility and caution that prices can fall as quickly as they rise.

“I am not going to make predictions about where the gold price is going,” Preston said during an interview last week. “But I certainly do not think it is done rising right now.”

“It is a very exciting time for Canadian gold miners.”