Gold surged past $5,100/oz on Monday, extending last week’s 8% rally.
- Spot gold: $5,111.11/oz (up 2.5%)
- U.S. Gold Futures: $5,145.39/oz (up 2.5%)
The metal has risen 17% in 2026, driven by geopolitical tensions, expectations of U.S. monetary easing, and central bank demand.
Other precious metals also climbed:
- Silver: $109.46/oz (+6%)
- Platinum: $2,910.67/oz (+4%)
Geopolitical Tensions Fuel Gold Demand
U.S.–NATO tensions over Greenland and Arctic strategic interests have unsettled markets.
Trade frictions with Canada intensified the rally:
- Trump warned of a 100% tariff on Canadian goods linked to China trade.
- He noted Canada could serve as a “drop-off port” for Chinese goods.
These geopolitical concerns increased safe-haven buying, pushing gold to record levels.
Fed Policy and Interest Rates Support Rally
Investors are closely watching the Federal Reserve meeting on Wednesday. Expectations:
- Rates likely on hold for now
- Future rate cuts may be hinted, supporting gold
Lower interest rates reduce the cost of holding non-yielding assets, making gold more attractive.
ING analysts note:
- A Jan 28 rate cut is unlikely
- Attention will focus on the new Fed Chair nomination and upcoming economic data
The combination of geopolitical risk and steady Fed policy underpins gold’s continued surge, making it a top safe-haven choice in 2026.