Gold rushes to record high amid rising geopolitical tensions
A woman walks past a jewellery shop at the Grand Bazaar in Istanbul, Turkey, Oct 17, 2025. (File photo: Reuters/Dilara Senkaya)
Gold surged to a record high above US$5,000 an ounce on Monday (Jan 26), extending a historic rally as investors piled into the safe-haven asset amid rising geopolitical tensions.
Spot gold rose 0.94 per cent to US$5,029.62 per ounce by 2321 GMT, while US gold futures for February delivery gained 1.02 per cent to US$5,029.70 per ounce.
"Our forecast for the year is that gold will see a high of US$6,400 an ounce with an average of US$5,375," independent analyst Ross Norman said.
Escalating friction between the United States and NATO over Greenland has added fresh momentum to gold's advance this year on expectations of more financial and geopolitical uncertainty.
On the geopolitical front, Ukraine and Russia ended a second day of US-brokered talks in Abu Dhabi on Saturday without a deal but with more talks expected next weekend, even as overnight Russian airstrikes knocked out power for over a million Ukrainians amid subzero winter cold.
Adding to uncertainty, US President Donald Trump said on Saturday he would impose a 100 per cent tariff on Canada if it follows through on a trade deal with China and warned Canadian Prime Minister Mark Carney that a deal would endanger his country.
Gold soared 64 per cent in 2025, underpinned by US monetary policy easing, central bank demand - with China extending its gold-buying spree for a fourteenth month in December - and record inflows into exchange-traded-funds.
Robin Tsui, Asia Pacific gold strategist at State Street Investment Management, said gold’s recent strength extends last year’s rally, which was driven largely by structural factors such as expectations of interest rate cuts.
He told CNA's Asia First that the latest gains are mainly the result of rising geopolitical risks, especially uncertainty over US policies and tariffs under Trump.
"We can see there's a lot of both strategic and tactical money that's going to gold," he added.
"All these tariffs and tensions have pushed more worries into the global economy. Gold has benefited from it, because historically it has been a good hedge against the potential downturn in currencies and risky assets."
Spot silver rose 1.85 per cent to US$104.85 per ounce. Spot platinum fell 0.21 per cent to US$2,762.25 per ounce, while spot palladium rose 0.22 per cent to US$2,014.50 per ounce.
Spot silver climbed above US$100 an ounce for the first time on Friday, building on its 147 per cent rise last year as retail investor and momentum-driven buying added to a prolonged spell of tightness in physical markets for the precious and industrial metal.
