Spot gold climbed 2.2% to $5,091.61 an ounce in late morning trade, after reaching an intraday high of $5,110.50. US gold futures for February delivery rose by the same margin to $5,089.90. The precious metal has already risen about 18% since the start of 2026, building on a staggering 64% gain in 2025, the largest annual increase since 1979.
Analysts point to safe-haven demand, US monetary policy easing, robust central bank purchases, and record inflows into exchange-traded funds as drivers behind the historic run. “US President Donald Trump and the uncertainty he creates on multiple levels remain the main driver of surging prices and investment momentum, fueled by fear of missing out,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Trump’s latest trade threats have added to investor jitters. On Saturday, he warned that he would impose a 100% tariff on Canada if it proceeded with a trade deal with China, raising concerns about potential disruptions to global trade.
Currency movements have also supported gold’s rally. The Japanese yen hit a two-month peak against the US dollar amid speculation of possible US-Japan intervention. At the same time, investors reduced dollar holdings ahead of this week’s Federal Reserve meeting and potential announcement of a new Fed chair. The dollar index fell to a four-month low, making gold and other dollar-priced metals more attractive to overseas buyers.
Analysts expect further upside for gold this year. Alexander Zumpfe, precious metals trader at Heraeus Metals Germany, said prices could climb toward $6,000 if global tensions rise further or confidence in currencies and financial assets erodes. “Such moves could include sharp interim corrections,” he added. Technical analysis suggests spot gold has cleared resistance at $5,070 and may trade between $5,154 and $5,206 per ounce, with potential to reach $5,427.
Other precious metals followed suit. Spot silver rose 5.8% to $108.92 an ounce, after reaching a record $110.11. Silver surged above $100 for the first time on Friday, building on a 147% gain last year driven by retail buying and tight physical markets.
Platinum and palladium also posted strong gains. Spot platinum jumped 4.4% to $2,888.51, touching a record $2,918.80, while spot palladium climbed 5.3% to $2,115.75 after reaching a more than three-year high of $2,142.70.
Investors and central banks continue to view precious metals as a hedge against uncertainty. With interest rates expected to remain low and geopolitical tensions high, gold’s rally appears poised to continue, supported by both financial and cultural demand around the world.
