Key Moments
- Spot gold climbed 1.1% to a record $5,035.83/oz, while U.S. futures hit $5,074.71/oz.
- Last week, gold jumped more than 8% and is now up nearly 17% for the year.
- Geopolitical tensions, tariff threats, and rate-cut hopes continue to fuel demand.
Safe-Haven Demand Pushes Gold Above $5,000
Gold surged past the $5,000 an ounce level on Monday. Investors rushed into the metal as geopolitical risks mounted.
By 18:52 ET, spot gold rose 1.1% to a record $5,035.83 per ounce. Meanwhile, U.S. gold futures also gained 1.1%, reaching $5,074.71.
The rally followed a strong performance last week. During that period, gold climbed more than 8% and set multiple records. As a result, year-to-date gains now stand near 17%.
Precious Metals Rally Broadens
The buying wave extended beyond gold. Other precious metals also advanced on Monday.
| Metal | Price Level | Move / Note |
|---|---|---|
| Gold (Spot) | $5,035.83/oz | Up 1.1%, record high |
| U.S. Gold Futures | $5,074.71/oz | Up 1.1%, new peak |
| Silver | $106.56/oz | Up over 2%, record high |
| Platinum | $2,798.46/oz | Modest gain, fresh high |
Silver jumped more than 2% to $106.56 per ounce. At the same time, platinum edged higher to $2,798.46. Together, these moves highlight broad demand for hard assets.
Geopolitical Risks and Tariff Threats Drive Buying
Geopolitical tensions remain a key driver of gold’s surge. In particular, friction involving the United States and its NATO allies has unsettled markets.
Disputes tied to Greenland and Arctic strategy have added uncertainty. Moreover, comments from former President Trump have raised concerns about future diplomatic fallout.
Over the weekend, Trump also escalated trade tensions with Canada. He warned of a potential 100% tariff if Ottawa advances a trade deal with China.
Trump claimed Canada could serve as a transit point for Chinese goods entering the U.S. As a result, fears of wider trade disruptions increased.
Taken together, rising political risk and trade uncertainty have strengthened gold’s appeal as a hedge.
Monetary Policy Expectations Add Momentum
In addition to geopolitical factors, monetary policy expectations continue to support gold. Investors increasingly expect easier U.S. policy later in 2026.
The Federal Reserve concludes its policy meeting on Wednesday. Markets widely expect no rate change this time.
However, investors will closely watch Chair Jerome Powell’s comments. Any hint of future rate cuts could further lift gold prices.
Lower rates typically benefit gold. They reduce the opportunity cost of holding a non-yielding asset.
“Both the data and Chair Powell’s defence of central bank independence suggest no January rate cut,” ING analysts said.
“They added that attention will turn to Trump’s Fed chair nomination and upcoming economic data.”
Central Bank Buying Supports the Trend
Central banks remain steady buyers of gold. At the same time, investors continue to seek protection from volatility.
With geopolitical risks elevated and policy uncertainty growing, demand for gold remains strong.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
