The global financial markets faced a dramatic shift on Monday, 26 January 2026, as investors rushed to protect their money. The price of gold, long considered the safest place to store wealth during troubled times, climbed 2.1 per cent to reach a staggering $5,079.70 (approximately £3,711.70) a troy ounce. This marks the seventh time this year that gold has reached an all-time high. The rally has been fuelled by a sudden increase in fear regarding the stability of the US government and international trade relations.
At the centre of this storm is a new threat from US President Donald Trump. On Saturday, Trump announced plans to impose 100 per cent tariffs on Canada if Prime Minister Mark Carney finalises a trade agreement with China. This potential trade war has rattled investors who worry about the economic fallout. Furthermore, the risk of a US government shutdown has increased sharply following a tragic shooting in Minneapolis. Senate Democrats are now demanding changes to homeland-security laws in the government funding package, leading to a standoff in Washington.
