Why gold climbed to an all-time high today

Gold prices rose to all-time high on Tuesday (January 27) as investors moved into safe-haven assets amid rising geopolitical tensions, a weaker US dollar, and sustained central bank demand.

Spot gold climbed 0.7% to $5,042.98 per ounce, extending its strong upward momentum this year. Prices have already gained about 18% since the start of 2026, following a sharp rally last year.

Market participants pointed to heightened geopolitical uncertainty as a key driver. Over the weekend, US President Donald Trump said the United States would impose 100% tariffs on Canada if it proceeds with a free trade agreement with China, adding to trade-related concerns.

Gold has also benefited from broader macroeconomic factors.

The US dollar index fell to a four-month low, making dollar-denominated metals more attractive to overseas buyers. At the same time, the Japanese yen strengthened to a two-month high against the dollar, while investors reduced dollar positions ahead of this week’s US Federal Reserve meeting and speculation around a potential new Fed chair.

Analysts said central banks continue to play a significant role in supporting prices as they diversify foreign exchange reserves. Ryan McIntyre, president of Sprott Inc, said gold remains supported by geopolitical and economic uncertainty, adding that investor interest has also returned, with holdings in gold-backed exchange-traded funds rising about 20% year-on-year.

Gold’s current rally follows an exceptionally strong performance in 2025, when prices surged 64%, marking the metal’s biggest annual gain since 1979.

Safe-haven demand, easing US monetary policy, robust central bank purchases, and record ETF inflows drove last year’s rise.

Looking ahead, analysts see potential for further gains, though they caution against volatility. Ole Hansen, head of commodity strategy at Saxo Bank, said ongoing political uncertainty continues to fuel investment momentum.

Separately, Alexander Zumpfe, precious metals trader at Heraeus Metals Germany, said further upside cannot be ruled out in stress scenarios, particularly if confidence in currencies or financial assets weakens, though sharp interim corrections remain possible.

From a technical perspective, Reuters analyst Wang Tao said spot gold has cleared resistance at $5,070 an ounce and could move into a range of $5,154 to $5,206 per ounce, with a longer-term target near $5,427 an ounce.

Some analysts have projected that gold could approach $6,000 per ounce this year if global tensions persist and demand from central banks and consumers remains strong.

–With agencies inputs

First Published: 

Jan 27, 2026 7:11 AM

IST