In New York, the price of gold rose above $5,100 per ounce, marking another all-time high. TradingView data showed the spot price at $5,046.73 per ounce, up 1.17% from the previous session, with intraday peaks reaching $5,110.50. February gold futures settled up 2.1% at $5,082.50, solidifying the bullion’s bullish trajectory.
The rally is underpinned by a confluence of geopolitical risk. After President Trump warned that Canada would face 100% tariffs if it pursues a trade deal with China, and amid reports of a Justice Department probe into Fed Chair Powell, investors sought a safe haven in gold. Adrian Ash of BullionVault said the main driver this year is political risk, with the ‘Trump and Trump’ dynamic fueling demand for gold. Central banks have also stepped up their purchases, aiming to diversify foreign-exchange reserves and reduce dollar dependence.
Holdings in physically backed gold exchange-traded funds have risen around 20% year over year, adding to institutional demand. The Wall Street Journal has described this as a ‘debasement trade,’ noting growing concerns over monetary trust.
Gold has risen 17.4% so far this year, following a record 64% gain last year. Goldman Sachs sees the potential for gold to climb to as high as $5,700 this year, while Societe Generale remains more conservative but contends that a break above $6,000 by year-end is possible.
Beyond gold, the broader precious metals complex also rallied, with platinum and palladium advancing to around $2,900 and $2,100 respectively. Daniel Galli of TD Securities argued the rally signals more than a basic inflation hedge, suggesting traders doubt the stability of the financial system and that further upside could unfold if confidence continues to erode. Ultimately, the path for gold will hinge on the Federal Reserve’s policy stance, the actions of global central banks, and evolving geopolitical developments.
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