Gold Surges Past $5,000 Amid Trump-Induced Global Relations Concerns
Gold prices have reached a historic milestone, surpassing $5,000 per ounce for the first time on Sunday. This surge comes amid growing concerns over U.S. President Donald Trump’s impact on global relations, particularly with key allies in Europe and Canada.
Gold’s Historic Rally
In the first month of 2026, gold prices increased by 15%. This follows a record-breaking year in 2025, where prices rose by 65%, marking the largest annual gain since 1979. Gold is often viewed as a safe haven during times of uncertainty, and this recent spike reflects heightened market anxiety.
Factors Driving Gold Prices
- Revocation of threatened tariffs against NATO allies.
- Military operations in Venezuela.
- Criminal investigations into Federal Reserve Chair Jerome Powell.
- Weaker U.S. dollar.
- High inflation rates.
- Anticipation of further interest rate cuts by the Federal Reserve.
- Central banks globally increasing their gold reserves.
As of 8:14 PM ET Sunday, gold was quoted at $5,058 per troy ounce, reflecting a 1.4% increase. In tandem with gold, silver also experienced a significant rise of 4.5%, reaching $107.8 per ounce. Like gold, silver recorded its best performance since 1979, with a remarkable 141% increase last year.
Analysts’ Perspectives
Despite the recent surge, analysts remain optimistic about gold’s future. Goldman Sachs has increased its gold price forecast to $5,400 per troy ounce. This adjustment is attributed to private-sector interest amid ongoing global policy uncertainty.
Ongoing Geopolitical Uncertainty
The unpredictability of Trump’s policies has added to geopolitical tension and market volatility, pushing investors towards precious metals. Recent events, such as the U.S. capture of Venezuelan President Nicolás Maduro and threats against Iran, have heightened these concerns. Furthermore, Trump’s controversial statements regarding Greenland and trade tariffs with Canadian imports have also unsettled the markets.
The dynamic situation has caused investors to accelerate their investments in gold as a protective measure against mounting risks and uncertainty in global relations.
