Meanwhile, Silver (XAG/USD) has also maintained its upward momentum and trading at $107.55, hitting an intraday high of $109.46. However, the rally was supported by the same factors supporting gold.
Geopolitical Tensions Push Investors Toward Gold
On the geopolitical front, US President Donald Trump’s renewed tariff threats have shaken global markets. He warned that Canada could face a 100% tariff if it goes ahead with a trade deal with China. This uncertainty has pushed investors toward safe-haven assets like gold, sending prices to new record highs.
At the same time, US-brokered talks between Ukraine and Russia ended without any agreement, which was seen as another key factor that put pressure on market sentiment. On top of that, the disagreements between the United States and NATO over Greenland have raised worries about trust within the alliance.
Therefore, these geopolitical tensions have increased uncertainty in the market, pushed investors toward safe-haven assets like gold.
Fed Rate Speculation, Central Bank Buying, and Surging ETF Demand Boosted Gold
On the US Fed front, markets are expecting the Federal Reserve to cut interest rates twice in 2026. This has weakened the US dollar and boosted demand for gold. Traders are now closely watching the two-day FOMC meeting, paying special attention to Fed Chair Jerome Powell’s remarks for hints about the future of monetary policy.
On the US Fed front, markets are expecting the Federal Reserve to cut interest rates twice in 2026. This has weakened the US dollar and boosted demand for gold. Traders are now closely watching the two-day FOMC meeting, paying special attention to Fed Chair Jerome Powell’s remarks for hints about the future of monetary policy.