Gold surpassed the $5,100 per ounce level on Monday, extending a strong rally from last week, as investors flocked to the safe-haven asset amid rising geopolitical tensions.

The spot price of gold rose nearly 2.5%, hitting a new all-time high of $5,111.11/oz at 6:52 p.m. Eastern Time (00:52 GMT). US gold futures also rose 2.5%, reaching a record high of $5,145.39/oz.

Gold has appreciated more than 8% in the past week, with prices repeatedly surpassing all-time highs. It has already accumulated a gain of almost 17% this year, driven by a combination of geopolitical risks, expectations of a more lax US monetary policy as early as 2026, and sustained demand from central banks.

Other precious metals also appreciated on Monday. Silver prices rose 6%, reaching an all-time high of $109.46/oz. Platinum appreciated 4%, reaching a new peak of $2,910.67/oz.

Geopolitical risks and Trump's tariff threats boost gold.
One of the main factors driving the rise in gold this month was the increased tension between the United States and its NATO allies regarding Greenland, which destabilized global markets.

Trump's rhetoric about US strategic interests in the Arctic region strained transatlantic relations, raising concerns about possible broader diplomatic and economic consequences.

To exacerbate these geopolitical tensions, Trump intensified trade friction with Canada this weekend, promising to impose a 100% tariff on Canadian goods if Ottawa proceeds with a trade deal with China. Trump wrote on his social media platform that Canada could be used as a "delivery port" for Chinese goods entering the United States and warned that Beijing would "devour Canada alive" if such a deal were finalized.

Fed Interest Rate Decision in Sight
Gold also received support from expectations surrounding US monetary policy. The Federal Reserve is due to conclude its monetary policy meeting on Wednesday, and markets are widely anticipating that policymakers will keep interest rates unchanged.

While a pause is already largely priced in, investors will closely analyze the Fed statement and comments from Chairman Jerome Powell for clues about the timing and pace of possible interest rate cuts later this year.

Lower interest rates tend to favor gold, reducing the opportunity cost of holding non-yielding assets.

"Both the data and Chairman Powell's firm defense of central bank independence indicate a low probability of a Fed interest rate cut on January 28," ING analysts said in a note.

"The focus will be on President Trump's imminent nomination for the new Fed chairman, the data that will be released soon, and whether that person will be able to convince the rest of the committee to make further cuts," they added.

Source: Notícias Agrícolas