New york: Gold surged 13.2% per ounce in January, marking its best monthly performance since September 1999 amidst escalating global geopolitical tensions. The precious metal's remarkable rise is attributed to a blend of international developments, economic factors, and investor behavior. According to Anadolu Agency, the US's insistence on purchasing Greenland, which resulted in tensions with Europe, alongside a lack of significant changes in Federal Reserve policy expectations, contributed to the rise in gold prices. The associated expectations that the US dollar might depreciate further fueled this upward momentum. Additionally, concerns over a partial federal government shutdown in the United States and increasing demand from China played a crucial role in gold's price surge. Gold's impressive streak from the previous year continued into January 2026, starting at $4,313 per ounce and reaching a record high of $5,598. By the end of December 2025, the ounce price of gold was $4,882.1, highlighting a signif icant climb in the following month. Several factors contributed to this record pricing, including the weakening US dollar and a notable shift of investors away from government bonds and currencies. Geopolitical uncertainties, such as concerns over global trade, heavy fiscal spending, and speculations regarding US intervention to support the Japanese yen, exerted additional pressure on the US dollar. This scenario made precious metals more affordable for buyers worldwide. Rising tensions, notably the US attack on Venezuela and potential military intervention in Iran, also drove gold and other safe-haven assets to unprecedented highs. The Federal Reserve's decision to maintain its policy rate between 3.5-3.75% in January, coupled with Fed Chair Jerome Powell's cautious remarks about the US's current debt situation, led to a decline in US dollar demand. The US's warnings to Iran about a potential military response and threats of additional tariffs against South Korea and Canada further compounded the geopoliti cal situation. Despite the potential for a market correction due to gold being overbought, strong buying interest on price dips supports the ongoing upward trend. Selling pressure in the Japanese bond market also contributed to the increase in gold prices, as higher bond yields raised borrowing costs and reduced the appeal of carry trade transactions, prompting investors to seek refuge in safe-haven assets. Ole Hansen, head of commodity strategy at Saxo Capital, shared with Anadolu that investors have been moving away from government bonds and currencies to shield against the risk of currency depreciation. The weakening US dollar has exacerbated this trend, with concerns over a federal government shutdown and speculation over increased Fed pressure on the dollar leading to these changes. Hansen highlighted that uncontrolled fiscal debt continues to erode confidence in fiat currencies, with capital shifting away from the US as its currency loses value. Hamad Hussain, a climate and commodities economist at C apital Economics, also told Anadolu that various factors contributed to gold's record prices. He noted that the US dollar had fallen to its lowest level in four years, and rising geopolitical risks, particularly involving US threats against Greenland and Iran, have increased demand for gold as a safe haven. Hussain emphasized that policy uncertainty in the US has further bolstered demand, suggesting that the upward trend in gold prices may persist in the near future.