Gold surges past $5,100 as geopolitical tensions fuel record rally
By CAL
January 27, 2026
Gold prices surged to record highs above $5,100 on Monday as investors moved into safe-haven assets amid escalating geopolitical tensions. Silver and platinum also climbed to unprecedented levels.
Spot gold rose 2% to $5,077.22 an ounce by 1:31 p.m. ET after briefly touching a record $5,110.50. U.S. gold futures for February delivery settled 2.1% higher at $5,082.50.
“Gold prices continue to be supported by elevated geopolitical and economic uncertainty.” said Ryan McIntyre, president of Sprott Inc. “Central banks remain strong buyers as they diversify foreign exchange reserves and reduce reliance on the U.S. dollar,”
McIntyre added that investor demand has also strengthened, noting that holdings in physically backed gold exchange traded funds have risen about 20% year over year.
The latest geopolitical flashpoint followed comments from U.S. President Donald Trump, who said on Saturday that he would impose a 100% tariff on Canada should it proceed with a trade agreement with China.
Investor attention has also been drawn to the possibility of coordinated currency intervention by U.S. and Japanese authorities.
Meanwhile, markets are bracing for this week’s Federal Reserve meeting, where policymakers are expected to keep interest rates unchanged. The meeting is overshadowed by a criminal investigation launched by the Trump administration into Fed Chair Jerome Powell, amid continued pressure from Trump to lower borrowing costs.
Lower rates would be supportive for non yielding gold, which is already up nearly 18% this year after surging 64% in 2025. Last year, gold broke through major milestones, surpassing $3,000 and $4,000 an ounce for the first time.
Analysts believe the rally still has room to run. Societe Generale forecasts gold will reach $6,000 an ounce by year end, though it cautions that this estimate may prove conservative. Morgan Stanley also sees further upside, citing a bull case target of $5,700.
Silver prices hit a fresh record of $117.69 an ounce before easing to $113.46, still up 10.2% on the day. Prices crossed the $100 mark on Friday as retail investor enthusiasm and momentum driven buying compounded tight physical market conditions.
Platinum climbed 1.8% to $2,816.38 an ounce after touching a record $2,918.80, while palladium jumped 5.9% to $2,127.68, the highest level since 2022.