Gold (XAUUSD) has surged past $5,000 per troy ounce for the first time and is currently hovering below $5,100 as the shiny metal’s historic streak continues.
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On Monday, Morgan Stanley (MS) lifted its bull case for gold to $5,700 by the second half of 2026. The firm’s bullish view is driven by continued geopolitical uncertainty, inflows from exchange-traded funds (ETFs), and demand from central banks. “Strong ETF demand is absorbing limited inventories after several years of deficits,” said Morgan Stanley.
Why is Gold Up Today?
Over the weekend, the fatal shooting of 37-year-old Alex Pretti in Minneapolis by a Border Patrol officer led to a group of Senate Democrats vowing to block a $1.2 trillion government funding bill unless appropriations for the U.S. Department of Homeland Security (DHS) are removed from it.
That means that another government shutdown could be on the way, creating risk for the market. As a safe-haven asset, gold tends to benefit during periods of economic or fiscal uncertainty. On prediction platform Polymarket, the odds of a shutdown by January 31 have risen to 81% from 10% on Friday.