Gold continued its upward trajectory on Wednesday, with spot prices soaring above the $4,800-per-ounce mark for the first time in history.

The precious metal has gained more than 10 percent so far this month, rising by over $480, as geopolitical risks and tariff threats by the United States spur heightened demand for safe-haven investments.

The domestic gold jewelry market has also seen price increases, with several brands pushing rates to near-record highs.

As of Wednesday, the price of 24k gold jewelry reached 1,495 yuan per gram at Chow Sangsang, up from 1,454 yuan per gram the previous day. Lao Miao Gold prices increased to 1,493 yuan ($215) per gram, from 1,455 yuan the day before.

Many financial institutions remain bullish on gold.

Citigroup has forecast that gold could challenge the $5,000-per-ounce mark in the next three months, assuming a bullish market scenario. This continued optimism comes as central banks around the world maintain an aggressive stance on gold purchases.

China's gold reserves have also showed a notable increase.

As of December, China's gold reserves stood at 74.15 million ounces, up 30,000 ounces from the previous month, marking the 14th consecutive month of accumulation by the People's Bank of China, the country's central bank.

Guan Tao, chief economist at Bank of China International, told the National Business Daily, that driven by both volume and price factors, the proportion of Chinese central bank's gold share in foreign exchange reserves during the same period reached 9.51 percent, an increase of 3.54 percentage points from the end of the previous year, setting a record high.

Li Yuefeng, a researcher at the Beijing Gold Economy Development Research Center, said: "The recent surge in gold prices can largely be attributed to increasing geopolitical risks and domestic political uncertainty in the United States. The threat of tariffs over Greenland and the ongoing concerns over the US Federal Reserve's role have created a strong tailwind for gold."

With gold now within $200 of the $5,000-per-ounce level, Li said that a break above this threshold could open the door for a broader rally.

He forecast that by the end of 2026, gold could reach levels between $6,000 and $8,000 per ounce, driven by a combination of inflation concerns, political risks, and the ongoing shift in global monetary policy.

wangzhuoqiong@chinadaily.com.cn