LONDON, 26 January 2026 — Gold prices surged to an unprecedented US$5,100 per ounce, extending a historic rally as investors and central banks rushed into safe-haven assets amid heightened geopolitical risks and renewed market volatility linked to Donald Trump.
Spot gold climbed 2.2% to US$5,091.61 an ounce by 1140 GMT after touching a fresh all-time high of US$5,110.50. US gold futures for February delivery rose in tandem to US$5,089.90.
The yellow metal has now gained about 18% year-to-date, building on a staggering 64% surge in 2025, its strongest annual performance since 1979. Analysts attribute the rally to a potent mix of safe-haven demand, expectations of US monetary policy easing, aggressive central bank buying, and record inflows into gold-backed exchange-traded funds.
Trump-Driven Volatility Fuels Momentum
Ole Hansen, head of commodity strategy at Saxo Bank, said uncertainty surrounding Trump remains a key catalyst.
“The uncertainty he creates on multiple levels remains the main driver of surging prices and investment momentum driven by a fear of missing out,” Hansen said.
Over the weekend, Trump renewed tariff threats, warning he would impose a 100% tariff on Canada should it proceed with a trade deal involving China, adding another layer of geopolitical tension.
Meanwhile, the yen rose to a two-month high against the US dollar amid speculation of possible US-Japan intervention, while investors unwound dollar positions ahead of this week’s Federal Reserve meeting and potential announcement of a new Fed chair.
The dollar index slid to a four-month low, boosting demand for dollar-priced commodities such as gold.
Analysts See Further Upside, With Caution
Market analysts said gold may have further room to run this year, with some projecting prices could test US$6,000 amid escalating global tensions and continued strong demand from both central banks and consumers.
Alexander Zumpfe, precious metals trader at Heraeus Metals Germany, cautioned that while upside remains possible, volatility should not be underestimated.
“Further upside cannot be ruled out in stress scenarios, particularly if confidence in currencies or financial assets deteriorates further,” Zumpfe said, adding that sharp interim corrections could accompany such moves.
From a technical perspective, Reuters analyst Wang Tao noted that spot gold has cleared resistance at US$5,070 and is expected to trade in a US$5,154–US$5,206 range in the near term, with a potential move toward US$5,427 over time.
Precious Metals Rally Broadens
The rally was not limited to gold.
- Spot silver surged to a record US$110.11 an ounce and was last up 5.8% at US$108.92, having climbed above US$100 for the first time last week. Silver rose 147% in 2025, driven by retail inflows and tight physical supply.
- Spot platinum jumped 4.4% to US$2,888.51, after hitting a record US$2,918.80.
- Spot palladium gained 5.3% to US$2,115.75, after touching a more than three-year high of US$2,142.70.
The synchronized surge underscores a broader flight into hard assets as investors brace for prolonged uncertainty across currencies, geopolitics, and financial markets.
