(qlmbusinessnews.com . Sat 31st Jan, 2026) London, UK —
Investors Rush to Gold as Safe Haven, Pushing Prices Beyond $5,000 per Ounce
Gold prices have skyrocketed to unparalleled heights, driven by investors flocking to the asset as a sanctuary amidst escalating global political unrest.
For the first time on Monday, the value of gold eclipsed the $5,000 (£3,646) per ounce barrier, momentarily reaching $5,500. Concurrently, silver and platinum witnessed appreciable gains.
Despite a sharp retreat following signals of political stability in the US, their values are significantly elevated compared to the previous year.
Investment Dynamics in the Trump Era
US President Donald Trump's implementation of tariffs on certain trading nations, deemed unfavourable, has disrupted global trade. Emma Wall, chief investment strategist at Hargreaves Lansdown, notes that these trade policies remain a concern for investors, fuelling the surge in gold prices.
The beginning of the year saw gold and silver prices peaking, while share prices dropped as the market reacted to Trump’s threat of new tariffs on eight European nations resistant to his proposed Greenland acquisition.
Hamad Hussain, an economist at Capital Economics, highlighted the perception of gold as a stable investment amidst the risks posed by Trump’s foreign and fiscal policies, spotlighting the precious metal.
The geopolitical landscape was further disturbed by conflicts in Ukraine and Gaza and the US's apprehension of Venezuelan President Nicolás Maduro, all contributing to gold's stellar performance.
Trump’s threats regarding Greenland amplified global tensions, diminishing confidence in the US dollar and making precious metals an even more appealing investment choice.
“Gold thrives amidst the turmoil, responding to escalating trade tensions, geopolitical crises, and US political instability,” Wall explained.
Central Bank Influence
The active acquisition of gold by central banks has significantly pushed its price upward.
“Investors and central banks globally… have shown a preference for gold as their reserve currency, distancing themselves from reliance on US policy,” Wall articulated.
In light of the potential threat of Russia having its US dollar assets seized in support of Ukraine, nations have found gold an enticing neutral reserve.
Still, Hussain mentioned that despite central banks increasing their gold reserves beyond 2022 levels, the demand appeared to wane in 2025.
China emerges as the largest gold purchaser, with domestic demand fuelled by jewellery buyers and investors alike.
Western investors also contribute considerably to gold demand, channelling funds into companies within the stock market that possess and deal in gold.
Hussain noted the entry of new buyers, such as Tether, a cryptocurrency firm that has recently acquired substantial gold reserves.
Reasons Behind Recent Price Fluctuations
The surging prices of gold and silver were partially attributed to concerns over Trump possibly appointing a Federal Reserve chairman who would fulfil his desire for lower interest rates, potentially devaluing the dollar and inciting inflation. Gold acts as a hedge against these outcomes.
However, speculation that Kevin Warsh, considered a stable choice, might be nominated by the president has seen a downturn in gold, silver, and platinum prices.
Yet, the allure of these precious metals remains strong against a backdrop of ongoing geopolitical tensions, persistent tariffs and threats of further tariffs by Trump, and global conflicts, solidifying their status as coveted “safe haven” assets.
Nicholas Frappell, global head of institutional markets at ABC Refinery, remarked to the Reporters on gold's unique appeal due to its scarcity and independence from external debt obligations, dubbing it an effective diversifier in a world mired in uncertainty.
Despite gold's recent price volatility, it exemplifies the commodity markets' inherent instability, capable of swift declines as much as rapid ascents.
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