Gold blasts past US$5,100 for the first time as precious metals rally on global upheaval

SINGAPORE – Gold surged to a record high above US$5,100 an ounce for the first time on Jan 26, after crossing the psychologically important US$5,000 level earlier in the day, as investors piled into the safe-haven asset amid rising geopolitical tensions.

Spot gold was up 2.2 per cent at US$5,089.78 an ounce at 2.56pm in Singapore, after earlier touching an all-time high of US$5,110.50. US gold futures for February delivery also gained the same amount to US$5,086.30 an 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.

Gold soared 64 per cent in 2025 and has already risen more than 18 per cent to date in 2026.

The latest catalyst “is effectively this crisis of confidence in the US administration and US assets that was set off by some of the erratic decision-making from the Trump administration last week”, said Mr Kyle Rodda, a senior market analyst at Capital.com.

A rising yen also dragged the US dollar, with markets on alert for possible intervention in the Japanese currency and investors cutting dollar positions ahead of this week’s Federal Reserve meeting. A weaker US dollar makes greenback-priced gold more affordable for holders of other currencies.

US President Donald Trump abruptly stepped back on Jan 21 from threats to impose tariffs on European allies as leverage to seize Greenland.

Over the weekend, he said he would impose a 100 per cent tariff on Canada if it followed through on a trade deal with China.

He has also threatened to hit French wines and champagnes with 200 per cent tariffs in an apparent effort to pressure French President Emmanuel Macron into joining his Board of Peace initiative.

Some observers fear the board could undermine the United Nations’ role as the main global platform for conflict resolution, though Mr Trump has said it will work with the UN.

“This Trump administration has caused a permanent rupture in the way things are done, and so now everyone’s kind of running to gold as the only alternative,” Mr Rodda added.

Gold’s rally in 2025 was underpinned by Federal Reserve interest rate cuts, central bank demand – with China extending its gold-buying spree for a 14th month in December – and record inflows into exchange-traded funds.

Buying accelerated in 2026 as heightened geopolitical risks have added impetus to the so-called debasement trade, where investors retreat from the US dollar and Treasuries.

Gold’s record-breaking rally – the metal has more than doubled over the last two years – drives home bullion’s historic role as a gauge of fear in markets. For investors looking to navigate this uncertainty, the haven appeal of gold has rarely been more attractive.

“Gold is the inverse of confidence,” said Mr Max Belmont, a portfolio manager at First Eagle Investment Management. “It’s a hedge against unexpected bouts of inflation, unanticipated drawdowns in the market, flare-ups in geopolitical risk.”

A weaker US dollar is also reinforcing demand for gold. The Bloomberg Dollar Spot Index, a key gauge of the US currency, fell 1.6 per cent last week to record its biggest weekly decline since May, making precious metals cheaper for most buyers.

Spot silver soared 4.8 per cent at US$107.903 an ounce, after hitting a record of US$109.44. Spot platinum rallied 3.4 per cent to US$2,861.91 an ounce, while spot palladium rose 2.5 per cent to US$2,060.70 an ounce.

Spot silver climbed above US$100 an ounce for the first time on Jan 23, building on its 147 per cent rise in 2025 as retail investor and momentum-driven buying added to a prolonged spell of tightness in physical markets for the precious and industrial metal. BLOOMBERG, REUTERS