Gold surged to a record high above $5,100 an ounce on Monday, January 26, extending a historic rally as investors piled into the safe-haven asset amid rising geopolitical uncertainties.
Spot gold rose 2.2% to $5,089.78 per ounce by 0656 GMT, after earlier touching an all-time high of $5,110.50. U.S. gold futures for February delivery also gained 2.2% to $5,086.30 per ounce.
The metal soared 64% in 2025, its biggest annual gain since 1979, driven by safe-haven demand, expectations of U.S. monetary policy easing, robust central bank purchases—including China’s fourteenth straight month of buying in December—and record inflows into exchange-traded funds.
Prices have set consecutive record peaks over the past week and have already risen more than 18% this year.
Analysts say the latest catalyst is a crisis of confidence in the U.S. administration and U.S. assets, triggered by what some describe as erratic decision-making from the Trump administration last week.
Trump stepped back from threats to impose tariffs on European allies as leverage to seize Greenland, and over the weekend said he would impose a 100% tariff on Canada if it pursued a trade deal with China. He also threatened 200% tariffs on French wines and champagnes, reportedly to pressure President Emmanuel Macron into joining his proposed Board of Peace initiative.
“This Trump administration has caused a permanent rupture in the way things are done, and so now everyone’s kind of running to gold as the only alternative,” said Kyle Rodda, senior market analyst at Capital.com.
A rising yen also dragged the dollar lower on Monday, with markets on alert for possible intervention in the yen and investors cutting dollar positions ahead of this week’s Federal Reserve meeting. A weaker dollar makes dollar-priced gold more affordable for holders of other currencies.