Spot gold rose nearly 2% to around USD 5,080 per ounce after touching a record high of USD 5,110. At the same time, US gold futures also gained about 2%.
Analysts said investors are turning to gold because of uncertainty in global politics and trade relations. In addition, the weaker US dollar has made gold cheaper for buyers using other currencies, which has pushed prices higher.
Political Tensions Drive Demand for Gold
Market experts said political developments in the United States are one of the main reasons behind the surge.
US President Donald Trump recently warned that he could impose a 100% tariff on Canada if it proceeds with a trade agreement with China. This statement increased fears of a wider trade conflict.
At the same time, investors are closely watching the US Federal Reserve meeting this week. The central bank is expected to keep interest rates unchanged, while President Trump has continued to pressure the Fed to cut rates.
Lower interest rates usually support gold prices because gold does not earn interest but becomes more attractive when borrowing costs fall.
Gold Has Risen Strongly This Year
So far this year, gold prices have already risen by nearly 18%. Last year, gold recorded a strong rally and crossed major levels such as USD 3,000 and USD 4,000 per ounce for the first time.
Some global banks expect prices to rise further. Analysts at Societe Generale said gold could reach USD 6,000 per ounce by the end of the year. Meanwhile, Morgan Stanley said prices could move toward USD 5,700 if the current trend continues.
Experts also noted that new private investors in Asia and Europe are buying more gold and silver to protect their savings from global risks.
- Silver and Platinum Also Hit Record Levels
- Other precious metals also reached new highs.
Spot silver climbed to a record USD 110.87 per ounce and later traded close to USD 110. Analysts said strong demand from exchange-traded funds and limited supply pushed prices higher.
Spot platinum rose to nearly USD 2,919 per ounce, while palladium climbed above USD 2,099, reaching its highest level in more than three years.
Market analysts said demand for precious metals remains strong for now, even though some industrial demand, such as solar energy use, may slow later in the year.
Last modified: January 26, 2026
