The price of gold has surged past the record $5,000 per ounce level and shows little sign of easing back as investors continue to seek shelter from uncertainties connected to Donald Trump.
The commodity – a traditional safe haven for investors in troubled times – has been in high demand during the US president’s second stint in the White House.
It’s become seen as a valuable hedge against volatility caused by the likes of on-off trade wars and other threats. Gold recorded a 64% spike last year.
Money latest: Criminal barrister talks about ‘painfully low’ salaries
Major banks have, in recent weeks, been rushing to upwardly adjust their forecasts for gold prices during 2026 given the extraordinary run of events seen so far.
Gold has been particularly sensitive to US military action in Venezuela, the threat of strikes against Iran, rows between Mr Trump and America’s NATO allies over Greenland and, most recently, his renewed tariff vow against Canada.
Also unsettling markets has been a slide in the yen, with investors expecting policy intervention by the US and Japanese central banks to stabilise the latter’s currency.
Trump threatens Canada with 100% tariff over China trade deal
Trump praises ‘very brave’ UK soldiers after anger over Afghanistan troops remarks
China no longer America’s top defence priority, Pentagon says
The yen has been standing at multi-decade lows against the pound and record lows versus the euro in shifts all connected to Japan’s ultra low interest rates.
Another factor underpinning demand for gold is the market uncertainty over the future of the US central bank, the Federal Reserve.
Its latest rate-setting decision this week is being overshadowed by a criminal investigation of its chair Jerome Powell, whose term ends in May.
There is speculation in US media that Mr Trump, who is frustrated over the pace of interest rate cuts, will announce his nomination for Mr Powell’s successor this week.
The name has the potential to pour accelerant over market worries related to the bank’s independence.
Read more:
Special relationship turns toxic after NATO troop comments
Iran unveils mural warning US not to strike
Keep up with all the latest news from the UK and around the world by following Sky News
Be the first to get Breaking News
Install the Sky News app for free
Ipek Ozkardeskaya, senior analyst at Swissquote, said: “There has been no new escalation over the weekend – no fresh breach of international law, no invasion, no immediate military threat.
“The US did, however, threaten Canada with 100% tariffs, after Mark Carney approached China last week, defying the White House – a reminder that trade tensions remain alive and well.
“Beyond that, the news flow is thin. Yet the bid for precious metals suggests that market stress is far from over.”
