Fresh tariff threats from US President Donald Trump, including a proposed 100% tariff on Canada and steep duties on French wine and champagne, have rattled markets.
The United States government faces two foreign policy challenges, including its military actions in Venezuela and its ongoing territorial dispute with Greenland. These factors have increased the risk of international instability, driving investors to purchase gold.
A weakening US dollar has added momentum to the rally. The dollar index has slipped nearly 2% over the past six sessions, making bullion cheaper for non-dollar buyers. Analysts say currency weakness, combined with falling real yields, continues to support gold’s upside.
Gold achieved its most significant annual increase since 1979 in 2025, rising more than 75% for the year. The price increase in January reached 17%, confirming that gold functions as a market fear indicator.
The demand for products remains strong because central banks purchase assets, ETFs experience high inflows, sovereign debt levels increase, and the Russia-Ukraine and Israel-Iran conflicts continue.
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Bullish calls are growing louder. Goldman Sachs has raised its December 2026 gold target to $5,400 per ounce, citing central bank diversification. Philip Newman of Metals Focus expects prices to peak near $5,500 later this year. Meanwhile, author Robert Kiyosaki has floated a far more aggressive long-term target, though without a timeline.
Domestic trading remained shut due to Republic Day. The analysts anticipate a rapid reflection of global prices in the MCX trade when it re-opens on January 27.