Gold surged past $5,000 per ounce for the first time, hitting a record high of $5,035.83 as geopolitical tensions and a rush to safe-haven assets fueled demand. U.S. Gold Futures also hit an all-time peak of $5,074.71, marking an 8% weekly gain and a 17% rise this year.

Escalating diplomatic friction, including Trump’s threats of 100% tariffs on Canadian goods and tensions over Greenland, have rattled global markets. Investors are also reacting to expectations of looser U.S. monetary policy, with the Federal Reserve holding rates steady amid speculation over future cuts.

Market participants are watching Wednesday’s Fed decision closely, especially Chair Jerome Powell’s commentary on rate trajectories. Analysts at ING noted that while a cut this week is unlikely, focus will shift to Trump’s potential Fed Chair nomination and its implications for monetary direction.