Last Updated on January 26, 2026 by Deon
Gold is making history today. In a surprising turn that has astonished even the most optimistic analysts, the precious metal has decisively surpassed the $5,000 per ounce psychological threshold on Monday. As of this afternoon, XAU/USD is trading close to $5,075, having reached an astonishing all-time peak of $5,111 during the European trading session. To provide context, gold has appreciated approximately 18% in January alone, following a significant 64% increase last year. Why the “Flight to Safety”? Investors are gravitating towards gold as a safeguard against an increasing array of global and domestic uncertainties. Here are the factors driving this trend: Trade Tensions & Tariffs: President Trump’s recent announcement of a potential 100% tariff on Canadian goods (due to concerns regarding a Canada-China trade agreement) has unsettled the markets. Political Instability: Tensions surrounding the Federal Reserve’s autonomy and apprehensions of an impending US government shutdown on January 30th are contributing to anxiety. Prediction markets indicate that the likelihood of a shutdown has surged from 8% to nearly 78% in just a few days. Currency Intervention: Speculation that the New York Fed is performing “rate checks” on the Japanese Yen—a maneuver that typically precedes market intervention—has exerted additional pressure on the US Dollar. A Perfect Storm for the “Greenback” The US Dollar is currently under pressure, trading at its lowest levels since mid-September. Since gold Gold Breaks Records: The Historic Surge Beyond $5,000 Gold is making history today. In a surprising turn that has astonished even the most optimistic analysts, the precious metal has decisively surpassed the $5,000 per ounce psychological threshold on Monday. As of this afternoon, XAU/USD is trading close to $5,075, having reached an astonishing all-time peak of $5,111 during the European trading session. To provide context, gold has appreciated approximately 18% in January alone, following a significant 64% increase last year. Why the “Flight to Safety”? Investors are gravitating towards gold as a safeguard against an increasing array of global and domestic uncertainties. Here are the factors driving this trend: Trade Tensions & Tariffs: President Trump’s recent announcement of a potential 100% tariff on Canadian goods (due to concerns regarding a Canada-China trade agreement) has unsettled the markets. Political Instability: Tensions surrounding the Federal Reserve’s autonomy and apprehensions of an impending US government shutdown on January 30th are contributing to anxiety. Prediction markets indicate that the likelihood of a shutdown has surged from 8% to nearly 78% in just a few days. Currency Intervention: Speculation that the New York Fed is performing “rate checks” on the Japanese Yen—a maneuver that typically precedes market intervention—has exerted additional pressure on the US Dollar. A Perfect Storm for the “Greenback” The US Dollar is currently under pressure, trading at its lowest levels since mid-September.
