Trump Tariffs & Fed Drama: Gold Soars to Record $5,100
Gold made history on Monday (January 26th) by hitting a record high above $5,100/oz, as investors sought safe havens amid global political tensions and economic concerns. Silver and platinum also went on a frenzy, both hitting all-time highs.
The latest spot price (XAU/USD) is currently hovering around $5,040/oz — with a daily range of $4,982.91 – $5,110.73.
The main fuel for the rally: growing market unease over US President Donald Trump's policy direction. One trigger was Trump's threat of 100% tariffs on Canada if Ottawa proceeds with a trade deal with China.
In FX, rumors of US-Japan currency intervention have added to tensions. If true, the domino effect typically puts downward pressure on the dollar—and that tends to strengthen gold's appeal.
Another focus this week is the Federal Reserve meeting, which is expected to hold interest rates. But the meeting was overshadowed by political issues: an investigation into Fed Chairman Jerome Powell and pressure from Trump to lower interest rates—a combination that made the market increasingly defensive.
Gold itself has risen sharply: +64% throughout 2025 and around +18% year-to-date (early 2026), so it's natural for occasional periods of tension and tension to arise as some market players take profits.
Several major banks see further upside potential, despite high volatility. Reuters noted Societe Generale's projection that gold could reach $6,000/oz by year-end, while Morgan Stanley highlighted a bullish scenario at $5,700.
Source: Newsmaker.id
