Gold prices surpassed the $5,000 threshold for the first time, despite the closure of Indian commodity markets on Monday (January 26) in observance of Republic Day, achieving an intraday peak of $5,091.5 an ounce in international markets. The yellow metal experienced a notable increase of 2.2%, equating to $111 per ounce, in early trading as a resurgence in safe-haven demand propelled gold beyond a significant psychological threshold. On Friday, gold concluded trading at $4,979.7 on COMEX. Following a tumultuous week characterized by escalating tensions regarding Greenland and Iran, the new week commenced with a selloff in bonds and pronounced fluctuations in the yen. The Nikkei 225 index in Japan experienced a decline of nearly 2%, shedding 1,074 points and reaching an intraday low of 53,846.87. The Indian equity markets are closed today and will reopen for trading on Tuesday.
The yen strengthened by 0.5% to 154.84 per dollar as of 0052, following significant fluctuations on Friday that fueled speculation regarding possible intervention, according to reports. The report also noted that the New York Federal Reserve performed rate checks on Friday, increasing the likelihood of a coordinated U.S.-Japan intervention to curb the currency’s decline. The ongoing dynamics surrounding the yen are expected to persist into the upcoming week; however, the previously unidirectional market has experienced a disruption, at least temporarily,” remarked Marc Chandler.
In light of recent developments, commodity and currency analyst Anuj Gupta remarked that global concerns persist at a high level, particularly following US President Donald Trump’s warning on Saturday regarding the potential imposition of a 100% tariff on Canada should Ottawa proceed with its proposed trade agreement with China. The recent increase in the bullion metal on Monday highlights a prevailing risk-off sentiment in the market. He anticipates additional gains in gold and silver, projecting gold to test the $5,200 mark in the near term, while silver is expected to reach between $110 and $115. Silver February futures reached a peak of $108.78 per ounce during the day, reflecting an intraday increase of nearly 8%.
On Sunday, Canadian Prime Minister Mark Carney articulated that Canada does not intend to seek a free trade agreement with China. Carney indicated that his recent accord with China primarily involves the reduction of tariffs on select sectors that had recently faced tariff impositions, as reported. Gold and silver prices have maintained their robust performance from 2025 into 2026 thus far, even while operating within an overheated market environment. While gold has increased by 18% or $755 this year, the ascent of the white metal has been nearly three times that of its more lustrous counterpart. According to Gupta, silver prices have increased by 51%, translating to an increase of $36 per ounce.