Gold surges in record territory around $5,175

The spot price of gold continued to set all-time highs on Tuesday as a nexus of uncertainty propelled the yellow metal.

Gold first surpassed the $5,000 an oz. milestone on Monday as a new threat of a U.S. government shutdown fueled the uncertainty behind gold’s rise.

Democrats might withhold support for a spending bill including funding for the Department of Homeland Security after the shooting death Saturday of a second person in Minneapolis by federal immigration agents.

It’s adding to instability over Trump’s stance on Greenland and Europe besides the Ukraine war, Gaza tension and Venezuela uncertainty under a new leader. As well, central banks continue to add to their reserves and retail investors in Asia are also stocking up.

The yellow metal could be on track to strongest year since 1979 when inflation, an oil shock and the Iran hostage crisis weighed on markets. Gold soared about 65% last year, its largest annual gain since 1979.

Other assets usually considered less volatile in uncertain times, such as bonds, are under stress. In Japan, the government’s costly plan to cut sales tax is being cited as a cause for bond yields to rise and there has been concern the malaise could spread to the U.S.