FTSE 100 Live: Gold's Historic Rally Continues Amid Global Tensions
Good morning and welcome back to the City AM FTSE 100 liveblog for Tuesday, 27 January 2026. The financial markets are navigating a complex landscape of geopolitical developments and economic signals as the trading week progresses.
Gold Surges Past $5,100 Milestone
Gold's remarkable rally extended into Tuesday morning, with the precious metal breaking through the $5,100 per ounce mark for the first time in history. This milestone represents the latest chapter in an extraordinary bull run that has seen prices skyrocket since Donald Trump's inauguration in January 2025.
The flight to safe-haven assets intensified following former President Trump's recent threat to impose 100 per cent tariffs on Canada if the country proceeded with its "strategic partnership" agreement with China. This development comes despite Trump initially praising the Canada-China deal as "a good thing" when it was unveiled last week by Prime Minister Mark Carney.
Geopolitical Tensions Rattle Markets
Tensions between the United States and its northern neighbour resurfaced following Carney's speech at the World Economic Forum in Davos, where he suggested the US-led world order had been fundamentally ruptured. Meanwhile, Trump's confrontation with European leaders over Greenland's future created additional market uncertainty, though he eventually withdrew his tariff threats after diplomatic clashes.
Market jitters were further compounded by fears of another potential US government shutdown. Democrats have threatened to withhold funding from the Department of Homeland Security following Saturday's shooting of Alex Pretti, a 37-year-old intensive care nurse, by federal immigration agents in Minneapolis.
Currency Markets and Intervention Watch
Alongside gold's ascent, the Japanese yen continued its advance against the US dollar, putting markets on heightened alert for potential government intervention. Japanese Prime Minister Sanae Takaichi has warned of action against "highly abnormal movements," with speculation growing about possible rare assistance from US authorities.
Expert Analysis and Market Perspective
Richard Hunter, head of markets at Interactive Investor, commented: "Haven investments remain in strong demand given the volatile backdrop we're witnessing. Silver has posted a further six per cent gain as a direct result of this ongoing flight to safety."
Political Developments: Starmer's China Mission
On the political front, Labour leader Keir Starmer is preparing for significant trade discussions with Chinese officials today. This diplomatic mission comes at a crucial time for UK-China relations and could have substantial implications for post-Brexit trade arrangements.
Yesterday's Key Market Stories
- Gold reached new record highs amid continuing Trump-related turmoil
- Calls emerged for reforming "unsustainable" public sector pensions to save billions
- Former Home Secretary Suella Braverman defected to Reform UK
- Profit warnings citing global upheaval hit record levels
- Exclusive reports suggested Manchester United's stadium plans could receive a £200 million boost
The liveblog has now concluded for this session. We'll continue to bring you the latest developments from the FTSE 100 and global markets throughout the trading day.
