{"id":89476,"date":"2026-01-27T07:25:29","date_gmt":"2026-01-27T07:25:29","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=89476"},"modified":"2026-01-27T07:25:29","modified_gmt":"2026-01-27T07:25:29","slug":"what-is-happening-with-gold","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2026\/01\/27\/what-is-happening-with-gold\/","title":{"rendered":"What is happening with gold?"},"content":{"rendered":"

As the Guardian reported<\/a> last night:<\/p>\n

\n

The price of gold has jumped above $5,000 an ounce for the first time as\u00a0Donald Trump\u2019s chaotic policies and proclamations drive more investors to\u00a0seek safe harbour\u00a0in the precious metal.<\/p>\n

Gold reached a record high of $5,100 (\u00a33,723) on Monday morning, before easing back to settle up 2.2% at $5,091.<\/p>\n<\/blockquote>\n

This marks a historic milestone driven by political volatility and economic fundamentals. So what is going on?<\/p>\n

First, there is the Trump factor. The fact is that the gold rally follows a cascade of destabilising policy moves from Trump. The multiple moves, prevarications and (so far) retreats over Greenland, the military operation targeting Venezuelan President Nicol\u00e1s Maduro, threats to the Federal Reserve, and more have all destabilised market sentiment.\u00a0 Mark Carney's description of Trump's moves as creating a geopolitical rupture has been noticed, not least because it was one thing that could be believed.<\/p>\n

Second, there is the resulting flight to safety. The reality is that investors are, as a consequence, abandoning US and other government bonds, currencies, and maybe shares, and are currently viewing gold as a refuge from market chaos. This classic flight-to-safety pattern reflects deep uncertainty about global trade relationships and, in particular, the stability of US foreign policy.<\/p>\n

Third, there are serious economic underpinnings to all this. Three issues amplify the gold rally. They are:<\/p>\n