SPDR Gold Shares (NYSE:GLD) shares are climbing on Monday as gold breaks above the $5,000‑an‑ounce mark for the first time, driven by growing unease about the broader financial outlook and rising global tensions.
Geopolitical Turmoil Fuels Gold’s Historic Surge
The latest spark came over the weekend after President Donald Trump threatened to impose a 100% tariff on Canada if it moves forward with a new trade agreement with China. Canadian Prime Minister Mark Carney recently traveled to Beijing and reached a preliminary deal that would lower tariffs on Chinese electric vehicles in exchange for reduced duties on Canadian canola.
China pushed back on Monday, saying its arrangement with Canada isn't aimed at any third party and urged countries to adopt a "win‑win" approach to global relations, according to Reuters.
As headlines swirled around the Greenland conflict and Washington floated 100% tariffs on allies like Canada, gold blasted through the $5,000‑an‑ounce mark as investors turned to safe-haven assets.
At the same time, the U.S. is inching toward another government shutdown — its second in just a few months. Trump warned that "we're probably going to end up in another Democrat shutdown" after Senate Democrats moved to block funding for the Department of Homeland Security following a deadly incident in Minneapolis involving U.S. Border Patrol agents.
Prediction markets now see a shutdown on Jan. 31 as highly likely, with Kalshi bettors assigning roughly a 77% chance that parts of the government will close.
Upcoming Fed Meeting
Adding to the uncertainty, the Federal Reserve meets this week and is expected to keep interest rates unchanged. But the meeting is being overshadowed by a Trump administration criminal investigation involving Fed Chair Jerome Powell, Reuters reported. Trump has continued pressuring Powell to cut rates.
"We're seeing a wave of new, first‑time investors driving this surge in precious metals," said Adrian Ash, head of research at BullionVault. "Private investors across Asia and Europe are rushing to build their personal holdings of gold and silver."
Several gold miners are also moving higher on the news. Hycroft Mining Holding Corp (NASDAQ:HYMC) climbed to $54.02, up 6.55% on Monday, according to Benzinga Pro. Newmont Corp (NYSE:NEM) gained 2.23% to reach $127.08, marking a new 52‑week high, while Barrick Mining Corp (NYSE:B) rose 1.85% to $52.02, also hitting a fresh 52‑week high.
GLD Price Action: SPDR Gold shares were up 0.95% at $462.36 at the time of publication. It’s making new 52-week highs on Monday, according to Benzinga Pro.
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