Gold rate today: Driven by safe-haven demand, gold prices in the international markets surged past the $5,000 an ounce for the first time on Monday, January 26.
According to a Reuters report, spot gold rose 1.98% to $5,081.18 per ounce by 0323 GMT, after touching $5,092.71 earlier. US gold futures for February delivery gained 2.01% to $5,079.30 per ounce.
The rally in gold prices continued as risk-off sentiment gripped investors amid rising geopolitical risks and trade war fears. Along with this, a weak US dollar also supported sustained buying in the yellow metal.
Fresh Trump tariff threats, other factors behind gold price rise
Over the weekend, US President Donald Trump said he would impose a 100% tariff on Canada if it followed through on a trade deal with China. Additionally, he also threatened to hit French wines and champagnes with 200% tariffs in an apparent effort to pressure French President Emmanuel Macron into joining his Board of Peace initiative.
This comes after the military intervention in Venezuela, threats to annexe Greenland and the Trump administration’s efforts to undermine the authority of the US Federal Reserve.
Gold prices last year recorded their best bull run since 1979 as they surged over 75%. So far in 2026, the yellow metal has rallied 17% on a month-to-date basis, driving home the role of gold as a gauge of fear in markets.
Apart from safe-haven demand, a weak US dollar has also made bullion attractive for buyers of other currencies. A gauge of the US currency has fallen almost 2% in six sessions, suggested a Bloomberg report.
Central bank buying, robust ETF inflows and persistent global and economic uncertainty in the face of the Russia-Ukraine crisis, along with the Israel-Iran conflict, have been among other factors that have contributed to gold’s persistent sheen over the last year.
Rising debt in advanced economies has been another key pillar of gold’s rally.
Back home, the commodity markets remained shut on account of Republic Day. Trading on MCX will resume on January 27, with the prices expected to shoot up amid catch-up in the international market.
Gold price target: More gains ahead?
Analysts remain bullish on gold, expecting the yellow metal to rise to $5500.
Goldman Sachs, last week, raised its gold price target to $5,400 per ounce for December 2026 from $4,900/oz earlier, noting private-sector and emerging market central banks’ diversification into gold.
“We expect further upside (for gold). Our current forecast suggests that prices will peak at around $5,500 later this year,” Philip Newman, director at Metals Focus, told Reuters.
Sharing a wild target for gold, Rich Dad Poor Dad author Robert Kiyosaki said gold could hit $27,000 in the future. He, however, did not specify the timeline for this target.
(With inputs from agencies)
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions.
