Gold prices cross $5,100 for the first time amid geopolitical uncertainties

On January 26, 2026, spot gold prices reached a record high of $5,110.50 per ounce, driven by investor demand for safe-haven assets amid geopolitical uncertainties. The price surge follows a 64% increase in 2025, fueled by factors including US monetary policy easing, central bank purchases (particularly from China), and inflows into exchange-traded funds. The rise in gold prices coincides with ongoing global trade disruptions stemming from tariffs imposed by the Trump administration, which have impacted supply chains and increased business costs. Trump has been accused of using tariffs for geopolitical leverage, including threats against European allies and Canada. The price of US gold futures for February delivery also increased to $5,086.30 per ounce.

Gold prices have surpassed $5,000 an ounce for the first time, continuing a rally that saw a 60% increase in 2025. This surge is attributed to geopolitical tensions, including US-NATO disagreements over Greenland and concerns about President Trump's trade policies, such as threatened tariffs on Canada. Investors are turning to gold and other precious metals like silver, which also hit record highs, as safe-haven assets amid uncertainty. Demand is further fueled by inflation, a weak US dollar, central bank buying, and anticipated interest rate cuts. Scarcity also contributes to gold's appeal, with limited amounts ever mined and future supply expected to plateau.

Gold prices reached a record high of US$5,100 an ounce on Monday, prompting analysts to predict further increases. The surge is attributed to gold's growing appeal as a safe-haven asset amid heightened geopolitical risks and a push for de-dollarisation. Analysts like Alexandra Symeonidi from William Blair cite events like the Venezuela news and Greenland headlines as contributing factors. Goldman Sachs has revised its year-end price target for gold to US$5,400 an ounce, forecasting continued growth through 2026 due to strong demand from investors seeking stability in a volatile market. The demand is driven by macroeconomic uncertainty and a geopolitical environment that continues to generate volatility across financial markets.