Gold Prices Reached All-Time High on January 27: Check Why?

Gold prices climbed to a fresh all-time high on Tuesday, January 27, as investors sought refuge in safe-haven assets against a backdrop of rising geopolitical tensions, a weaker US dollar, and steady central bank demand.

Spot gold rose 1.64% to $5,070.21 per ounce at 08:04 AM IST, continuing its robust upward momentum this year. The metal has already gained about 18% in 2026, building on the sharp rally seen last year.

Gold’s latest surge follows an exceptional run in 2025, when prices jumped 64%, marking the metal’s biggest annual gain since 1979. Safe-haven demand, expectations of easier US monetary policy, strong central bank purchases, and record inflows into gold-backed exchange-traded funds were the main drivers of gold’s rally in 2025.

Factors Behind Rising Gold Prices 

Geopolitical Risks Fuel Investor Demand

Market participants cited heightened geopolitical uncertainty as a key catalyst. Over the weekend, US President Donald Trump said the United States would impose 100% tariffs on Canada if it moves ahead with a free trade agreement with China, reviving trade-related concerns.

Weaker Dollar Adds to Gold’s Appeal

Broader macroeconomic factors also supported prices. The US dollar index slipped to a four-month low, making dollar-denominated metals more attractive to overseas buyers. The Japanese yen strengthened to a two-month high, while investors trimmed dollar positions ahead of this week’s US Federal Reserve meeting and speculation around a potential new Fed chair.

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Conclusion

Historically, the surge in gold prices has been primarily backed by key factors such as safe-haven demand, expectations of easier US monetary policy, strong central bank purchases, and record inflows into gold-backed exchange-traded funds.

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