Gold Surges Above $5,000 on Shutdown Fears, Geopolitical Tensions
Precious metal’s prices rise above the figure for the first time
- Gold prices surpassed $5,000 an ounce for the first time, reaching $5,049.68, driven by U.S. government shutdown fears.
- Spot silver rose 3.8% to $107.22 an ounce, hitting a new all-time high of $107.30 amid safe-haven demand.
- Precious metals have surged this year, with gold up 17% and silver up 50%, due to global economic and political uncertainty.
Gold prices climbed above the psychologically important $5,000-an-ounce level for the first time, as investors sought the refuge of safe-haven assets on fears that the U.S. federal government might shut down for the second time in months.
Spot gold rose 1.2% to $5,049.68 a troy ounce on Monday after earlier touching a record high of $5,052.02 per ounce, ICE data showed. Spot silver also rose 3.8% to $107.22 an ounce after hitting a fresh all-time high of $107.30 per ounce earlier.
The risk of a government shutdown emerged as Senate Democrats, angered by the shooting in Minneapolis, said they wouldn’t vote for a government funding package without major changes to the homeland security provisions. The Democrats’ call for changes raised the prospect of Congress running out of time before funding for much of the federal government expires at 12:01 a.m. on Jan. 31, which would trigger a partial government shutdown.
Meanwhile, President Trump on his Truth Social platform on Saturday warned that the U.S. would impose 100% tariffs on all Canadian goods and products coming into the U.S. if “Canada makes a deal with China.” Trump’s remarks threatened a major escalation in a brewing trade conflict with Canada.
“Precious metals show no signs of stopping on the upside,” Sucden Financial said in commentary. “This momentum appears relentless, and for us, the question is not the directional view but how long market participants can finance these gains,” it added.
Precious metals have surged this year, driven by uncertainty in global economics and politics amid volatility in financial markets.
Some of those issues included the broad imposition of U.S. tariffs early last year, the U.S. seizure of Venezuelan strongman Nicolás Maduro, and increased concerns over the Federal Reserve’s independence. More recently, Trump’s efforts to take control of Greenland sent the post-World War II alliance between the U.S. and its European partners into its worst crisis in over 70 years.
Spot gold has jumped around 17% year to date, while silver has powered roughly 50% higher, ICE data showed.