Gold Soars 13.2 Percent in Best Monthly Performance Since 1999 Crisis
Washington's persistent pursuit of Greenland purchase sparked friction with European allies, while stagnant Federal Reserve policy expectations and forecasts of dollar depreciation fueled the precious metal's ascent.
Anxieties surrounding a potential partial U.S. federal government shutdown and accelerating Chinese demand further propelled prices upward.
The yellow metal's record-breaking momentum from the previous year carried seamlessly into January 2026.
Gold launched 2026 at $4,313 per ounce before climbing to an unprecedented peak of $5,598 during January.
The ounce valuation concluded December 2025 at $4,882.1.
Multiple dynamics drove the historic pricing, with dollar weakness and investor migration from government bonds and currencies serving as primary catalysts.
Apprehensions regarding global commerce, substantial fiscal expenditures, and speculation that Washington might intervene to bolster the Japanese yen intensified dollar pressure while making precious metals more affordable for international purchasers.
Precious metals experienced dramatic appreciation throughout the previous year amid escalating geopolitical tensions and doubts about the Fed's autonomy.
Gold and alternative safe-haven instruments soared following the U.S. attack on Venezuela, while possible American military action in Iran triggered record valuations.
The Fed maintained its policy rate steady at 3.5–3.75% in January, aligning with projections, while Fed Chair Jerome Powell's commentary reflecting a cautious perspective on America's current debt burden diminished dollar demand.
Washington warned Iran to negotiate a nuclear agreement or confront military consequences, simultaneously threatening South Korea and Canada with additional tariffs.
Gold has entered overbought territory and could face correction pressure, though robust purchasing interest during price declines reinforces the bullish trajectory.
Selling pressure within the Japanese bond market also boosted gold valuations, as climbing bond yields elevated borrowing expenses and diminished carry trade appeal, prompting investors toward safe-haven instruments.
Investor exodus from bonds and currencies drives volatility
Ole Hansen, head of commodity strategy at Saxo Capital, told media that investors have migrated from government bonds and currencies to shield against currency devaluation risk, while continued dollar deterioration amplified the movement.
Federal government shutdown concerns and speculation regarding additional Fed pressure on the dollar triggered these shifts, while industrial silver demand began declining and investor appetite concentrated on physical assets.
Hansen stated that unrestrained fiscal debt persistently undermines confidence in fiat currencies, and America's privileged standing eroded with its currency losing value and capital relocating elsewhere.
The unpredictable American political landscape intensified global uncertainty, while persistent inflation worries contributed to the transformation.
Hansen observed that global equity results demonstrated gradual reallocation away from U.S. assets, while emerging markets outperformed developed markets since early 2026, and gold fulfilled a hedging function against systemic risk, attracting protection-seeking investors.
Hamad Hussain, climate and commodities economist at Capital Economics, told Anadolu that numerous factors converged to drive record gold prices.
Hussain stated that the U.S. dollar fell to its lowest in four years and rising geopolitical risks, especially related to US threats against Greenland and Iran, increased the demand for gold as a safe haven.
He noted that policy uncertainty in America fueled demand increases that elevated gold, observing that the upward trajectory may persist near-term.
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