Gold achieved a historic milestone on Sunday, surpassing $5,000 per ounce for the first time as global uncertainty and geopolitical tensions drove investors toward safe-haven assets. The precious metal reached $5,026 per ounce in trading, following silver's breakthrough above $102 per ounce on Friday.

Trump Policy Tensions Drive Market Volatility

Recent turbulence stems primarily from Trump's ambitions regarding Greenland and mounting pressure on the Federal Reserve. Trump backed away from threatened tariffs on several European nations due to their opposition to Washington's interest in the mineral-rich Arctic island. However, his comments triggered a significant transatlantic crisis, reviving trade war fears and creating uncertainty about US investment prospects.

The dollar's decline to a four-month low against the euro coincided with gold's surge, reflecting investor concerns about geopolitical stability. Danish Prime Minister Mette Frederiksen visited Greenland's capital on Friday for discussions with the territory's leadership amid the ongoing tensions.

Federal Reserve Independence Concerns

Investors are closely monitoring this week's Federal Reserve policy meeting following US prosecutors' actions against Fed Chair Jerome Powell. The subpoenas issued against Powell have raised fears about potential criminal indictment and threats to the central bank's independence. Trump has openly criticized Powell, claiming there is "no inflation" and repeatedly questioning the Fed chair's competence and integrity.

Major central bank leaders expressed support for the Fed and Powell last week in response to the prosecutorial pressure. Market analysts view these developments as creating additional uncertainty that supports gold's appeal as a protective asset.

Sustained Demand and Market Dynamics

Gold's remarkable performance extends beyond recent political developments. The precious metal has achieved multiple all-time peaks over the past two years, supported by various factors including weak dollar conditions, strong central bank demand, and elevated inflation levels. Additional support has come from ongoing conflicts in Ukraine and Gaza, as well as Washington's intervention in Venezuela.

The World Gold Council reported that gold demand by value surged 44% year-on-year to a record $146 billion in the third quarter. Exchange-Traded Funds have experienced particularly strong demand, allowing investors to gain gold exposure without trading on futures markets.

Market Analysis and Outlook

Market analysts characterize recent gold price action as "textbook safe-haven behaviour." Fawad Razaqzada from Forex.com noted that underlying demand for protection remains strong, with confidence in the dollar and bonds appearing "a bit shaky." Neil Wilson from Saxo UK emphasized that while markets weren't pricing extreme scenarios like US military intervention in Greenland, concerns about escalatory trade wars were driving investor behavior.

Stephen Innes, an independent analyst, highlighted the combination of geopolitical tensions and lingering doubts around central bank independence as creating a "slow-burning support base for gold." This sustained uncertainty continues to reinforce gold's traditional role as a hedge against political and economic instability.

Gold prices in India took a breather on January 25, 2026, after an unprecedented rally that created new records in the bullion market. The stabilization comes after a massive surge that has put significant pressure on retail buyers and made precious metal purchases increasingly difficult for middle-class consumers.

Current Gold Rates Across Categories

The precious metal prices remained steady on Sunday, holding at the previous day's levels across all categories:

Recent Price Surge Impact

The gold market witnessed extraordinary volatility in recent days, with 22-karat gold prices surging by Rs.5,450 per 10 grams over just two days. This represents an 11% climb over a 10-day period, creating significant challenges for retail buyers. The sharp rise in precious metal prices has stunned market participants, with rates showing remarkable strength before the current pause.

MCX Futures Performance

On the Multi Commodity Exchange, gold and silver futures showed marginal declines at Friday's close:

City-wise Gold Rates on January 25

Gold prices remained uniform across major Indian cities on January 25:

International Gold Market Developments

The global gold market continued its bullish momentum, with spot gold reaching a record peak of $4,917.65 per ounce as of 01:51 p.m. ET (18:51 GMT). U.S. gold futures for February delivery settled 1.6% higher at $4,913.4 per ounce, reflecting strong international demand.

According to ICICI Commodity report, spot gold is likely to trade with positive bias toward the $5,000 level, supported by weak dollar conditions and softening U.S. treasury yields. The expectation of two more rate cuts during the year, along with fiscal concerns and uncertainty surrounding the halted EU-US trade agreement approval, continues to drive precious metal demand. Strong central bank buying patterns are expected to provide additional price support.