By Swati Verma Jan 26 (Reuters) — Gold prices extended a record-setting rally on Monday, climbing past the $5,100 mark as central banks and investors sought refuge amid geopolitical tensions and Trump‑related market volatility. Spot gold was trading at $5,093.96 an ounce by 0841 GMT after touching an intraday high of $5,110.50; U.S. gold futures for February delivery were quoted at $5,090.40.

  • Record intraday high: $5,110.50 per ounce (Jan 26, Reuters)
  • Spot price: $5,093.96 per ounce (0841 GMT)
  • U.S. February futures: $5,090.40 per ounce
  • Move cited: +2.2% intraday
  • Drivers: central banks and investor safe‑haven demand; geopolitical and market volatility

Context: where this sits in current market trends

The move is a classic safe‑haven reaction in a risk‑off episode. With spot and nearby futures converging above $5,090, bullion is commanding a pronounced premium that reflects immediate replacement cost rather than long‑term jewellery demand alone. For market participants this means higher raw‑material carry: gold’s dense, metallic luster and substantial heft translate directly into material cost per SKU for weight‑based jewellery segments.

Central banks and institutional investors looking to preserve capital, as cited in the Reuters dispatch, are supporting price momentum. That dynamic differs from typical retail jewellery cycles: it is driven by macro hedging and position‑taking rather than seasonal consumer buying.

Impact: why this matters for the US market

For US retailers and wholesalers the immediate implications are practical. Inventory marked to market will show material value appreciation, increasing replacement costs for reorders and compressing gross margins on existing price‑locked stock. Merchants carrying heavier gold pieces face greater margin exposure; smaller, metal‑efficient designs will have relatively lower sell‑through risk.

Operational responses include tightening procurement windows, accelerating hedging strategies, and revisiting price architecture for weight‑sensitive SKUs. For investors, the record reinforces gold’s role as a liquidity reserve in periods of political and market stress; for jewellers, it raises the urgency of inventory valuation and communication—emphasising provenance and value retention rather than promotional discounts.

Reporting by Swati Verma for Reuters, Jan 26.

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