Gold Tops $5,100 for the First Time, Up More Than 15% in January
The U.S. dollar index fell close to its lowest level since 2022, signaling sustained weakness.
Quick overview
- Major metals closed lower after reaching all-time highs, influenced by safe-haven capital flows.
- Gold peaked at $5,145.39 per ounce but ended slightly lower due to profit-taking, with a year-to-date increase of 15.2%.
- Geopolitical tensions, particularly regarding Iran and Greenland, have heightened market anxiety and driven investors toward safe-haven assets.
- Analysts predict gold could rise further this year, potentially reaching $6,000 per ounce amid ongoing global tensions.
Major metals closed lower on the day after hitting unprecedented all-time highs, driven by a surge in safe-haven capital flows.
Gold climbed above $5,100 per ounce but ended the session slightly lower on profit-taking. The metal has already surged more than 15% in January, supported by strong safe-haven demand. The rally comes amid a weaker U.S. dollar following a turbulent week in which geopolitical tensions surrounding Greenland and Iran rattled investors, while markets remained on edge after sharp swings in the Japanese yen.
The yen strengthened more than 1% to 154.22 per dollar, after Friday’s sharp moves sparked speculation about a possible market intervention. According to Reuters, the New York Federal Reserve conducted exchange-rate checks on Friday, raising the likelihood of a joint U.S.-Japan intervention to stem the currency’s decline.
Spot gold reached an intraday peak of $5,145.39 before settling at $5,050.61 per ounce, while U.S. gold futures for February delivery closed at $5,008.35.
Gold surged 64% in 2025, marking its strongest annual gain since 1979, and shattered multiple records amid safe-haven demand, looser U.S. monetary policy, heavy central bank purchases, and record inflows into exchange-traded funds. Prices are now up 15.2% year to date.
U.S. President Donald Trump offered markets temporary relief last week by scaling back tariff threats and downplaying the prospect of aggressive measures against Greenland. However, new sanctions targeting Iran have renewed market anxiety.
Rising U.S. pressure on Iran has pushed oil prices higher and sent gold—long considered a safe-haven asset—to fresh record highs. Precious metals, including silver, have posted strong gains so far this year, further supported by the weaker dollar.
Why gold is rising
Commodity markets are experiencing an unprecedented shake-up as investors shift aggressively toward safe-haven assets, seeking protection against economic volatility and ongoing geopolitical and trade tensions.
Trump-related uncertainty across multiple fronts remains a key driver of rising prices and investor positioning, fueled by fears of missing out on further gains.
The U.S. dollar index fell close to its lowest level since 2022, signaling sustained weakness and making dollar-priced metals more attractive to overseas buyers.
Analysts say gold still has room to rise this year, potentially toward $6,000 per ounce, amid escalating global tensions and continued strong demand from central banks and consumers.
Spot silver hit fresh highs at $100.06 per ounce before ending the session down 1.1% on profit-taking at $103.89. The metal is up 47.2% year to date.
Spot platinum fell 7.1% to $2,577.55, after touching a record $2,923.40, while palladium dropped 3.6% to $1,992.50, after reaching a peak of $2,195.19.
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