Gold pushed decisively above the $5,100 an ounce mark on Monday, extending last week’s powerful rally as investors sought refuge in the precious metal amid intensifying geopolitical uncertainty.
Spot gold climbed almost 2.5% to a new record of $5,111.11 an ounce by 18:52 ET (00:52 GMT). U.S. gold futures mirrored the move, rising 2.5% to an all-time high of $5,145.39 an ounce.
The metal gained more than 8% last week after repeatedly setting new highs and is now up close to 17% year to date. The advance has been underpinned by a mix of geopolitical tensions, expectations of looser U.S. monetary policy later in 2026 and continued buying from central banks.
The rally was not limited to gold. Silver prices jumped 6% to a record $109.46 an ounce, while platinum surged 4% to a new peak of $2,910.67 an ounce.
Geopolitics and tariff threats lift bullion
Rising geopolitical risk has been a key catalyst for gold’s surge this month, particularly escalating frictions between the United States and NATO allies over Greenland, which have unsettled global financial markets.
President Donald Trump’s comments on U.S. strategic interests in the Arctic have strained transatlantic relations and fuelled concerns about wider diplomatic and economic repercussions.
Adding to those tensions, Trump stepped up trade rhetoric against Canada over the weekend, threatening to impose a 100% tariff on Canadian goods if Ottawa moves ahead with a trade agreement with China. He wrote on social media that Canada could serve as a “drop off port” for Chinese products entering the United States and warned that Beijing would “eat Canada alive” should such a deal be struck.
Fed decision in focus
Gold has also been supported by expectations around U.S. monetary policy. The Federal Reserve is set to wrap up its latest policy meeting on Wednesday, with markets broadly expecting interest rates to remain unchanged.
While a pause is largely priced in, investors will closely parse the Fed’s statement and comments from Chair Jerome Powell for insight into the timing and scale of any rate cuts later this year. Lower interest rates typically benefit gold by reducing the opportunity cost of holding a non-yielding asset.
“Both the data and Chair Powell’s robust defence of central bank independence indicate little prospect of a 28 January Fed rate cut,” analysts at ING said in a note.
“The focus will be on President Trump’s imminent nomination for the new Fed Chair, the upcoming data, and whether that person can corral the rest of the committee into further cuts,” they added.