Analysts said erratic trade and tariff signals from the Trump administration have shaken confidence in U.S. assets, driving investors toward gold. Silver, platinum and palladium also gained sharply, with silver hitting fresh record highs.
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Gold surged to a record high above
$5,000 an ounce on Monday, extending a historic rally as
investors piled into the safe-haven asset amid rising
geopolitical uncertainties.
Spot gold rose 1.79% to $5,071.96 per ounce by 0159
GMT, after touching $5,085.50 earlier. U.S. gold futures
for February delivery gained 1.79% to $5,068.70 per ounce.
Historic rally
The metal soared 64% in 2025, supported by sustained
safe-haven demand, U.S. monetary policy easing, robust central
bank buying – with China extending its gold-buying spree for a
fourteenth month in December – and record inflows into
exchange-traded funds. Prices have gained more than 17% this
year.
The latest catalyst “is effectively this crisis of
confidence in the U.S. administration and U.S. assets, that was
set off by some of the erratic decision-making from the Trump
administration last week”, said Kyle Rodda, a senior market
analyst at Capital.com.
Tariff flip-flops
U.S. President Donald Trump abruptly stepped back on
Wednesday from threats to impose tariffs on European allies as
leverage to seize Greenland.
Over the weekend, he said he would impose a 100% tariff on
Canada if it followed through on a trade deal with China.
He has also threatened to hit French wines and champagnes
with 200% tariffs in an apparent effort to pressure French
President Emmanuel Macron into joining his Board of Peace
initiative. Some observers fear the board could undermine the
United Nations’ role as the main global platform for conflict
resolution, though Trump has said it will work with the U.N.
Rush to gold
“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,” Rodda added.
Dollar weakness
Meanwhile, a rising yen dragged the dollar broadly lower
early 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.
Currency effect
A weaker dollar makes greenback-priced gold more affordable
for holders of other currencies.
“We expect further upside (for gold). Our current forecast
suggests that prices will peak at around $5,500 later this
year,” said Philip Newman, director at Metals Focus.
“Periodic pullbacks are likely as investors take profits,
but we expect each correction to be short-lived and met with
strong buying interest,” Newman added.
Other metals
Spot silver was up 4.57% at $107.65 per ounce, after
hitting a record of $108.60. Spot platinum rose 3.26% to
$2,857.41 per ounce, while spot palladium rose 3.2% to
$2,074.40 per ounce.
Silver milestone
Silver climbed above the $100 mark for the first time on
Friday, building on its 147% rise last year as retail-investor
flows and momentum-driven buying compounded a prolonged spell of
tightness in physical markets for the metal.
Published on January 26, 2026
