Gold Breaks $5,100! Safe-Haven Demand
Gold prices continued their "run" and broke through $5,100 on Monday (January 26th), as central banks and investors sought refuge from geopolitical risks and market volatility triggered by Donald Trump's policies. Safe-haven demand intensified, pushing gold into a completely new price range.
At 08:41 GMT, spot gold rose 2.2% to $5,093.96 per ounce after hitting a record $5,110.50. US gold futures for February delivery rose by the same amount to $5,090.40.
This gold rally is no one-day surprise. Throughout 2025, gold has surged 64%—its largest annual gain since 1979—supported by a combination of safe-haven demand, easing US monetary policy, strong central bank buying, and record-breaking ETF inflows.
This year hasn't let up either: gold prices have risen around 18% since the start of the year. Several analysts believe that the "multi-level uncertainty" stemming from Trump remains the primary driver, fueling buying momentum due to the FOMO (fear of missing out) effect.
One of the latest triggers comes from tariff threats: Trump said on Saturday that he would impose 100% tariffs on Canada if the country sticks to its trade deal with China. Such trade tensions typically make investors more defensive and seek safe assets.
In the currency market, the yen hit a two-month high against the dollar on speculation of potential US-Japan intervention, while market participants also reduced dollar positions ahead of this week's Fed meeting and the possible announcement of a new Fed chair candidate. The dollar index (DXY) fell to a four-month low, which typically makes dollar-denominated metals more attractive to global buyers.
Technically, gold is said to have broken through the $5,070 resistance and has the potential to move to the $5,154–$5,206 range, with projections even suggesting further upside towards $5,427 if momentum remains strong.
Silver also hit a new record at $110.06 and was last up 6.2% at $109.36, while platinum rose 4.4% to $2,887.76 (from $2,897.35) and palladium rose 3.9% to $2,089.11 (from $2,095.19). (yds)
Source: Newsmaker.id
