1911 Gold Corporation (TSXV: AUMB; OTCQX: AUMBF)
1911 Gold is Manitoba’s Gold Standard - Ready, Permitted and High-Grade 1911 Gold is an Emerging Gold Producer, with Significant Cash Flow Generation and District-Scale Growth Potential
Gold prices rallied to a three-week high on Monday, propelled by a surge in safe-haven demand after a U.S. Supreme Court ruling against President Donald Trump’s tariff policies sent the dollar tumbling and cast fresh uncertainty over the trade policy outlook.
Spot gold climbed 1% to $5,152.11 per ounce by 1145 GMT, after hitting its highest level since Jan. 30 earlier in the session. U.S. gold futures for April delivery settled 1.8% higher at $5,172.80 per ounce. The metal touched a record high of $5,594.82 on Jan. 29.
The dollar weakened sharply after the Supreme Court ruled on Friday that Trump’s sweeping tariffs exceeded his authority, making bullion—priced in the U.S. currency—more affordable for overseas buyers.
“The uncertainty or even confusion surrounding the trade policy outlook, coupled with weak economic growth data, is providing a significant tailwind for gold,” said independent analyst Ross Norman. Trump reacted angrily to the ruling, imposing a blanket 15% tariff on imports—the maximum allowed under the law—while insisting on maintaining trade deals with nearly 20 countries.
Data on Friday showed that underlying U.S. inflation rose more than expected in December, with signs pointing to a further acceleration in January. This could discourage the Federal Reserve from easing monetary policy anytime soon, potentially diminishing the appeal of non-yielding gold. Markets are now closely watching a slew of Fed speakers this week for clues on the future policy path, while any developments regarding U.S.-Iran tensions will also remain in focus.
Jen Bawden, founder and CEO of Bawden Capital, urged investors to look past short-term volatility and focus on the macro fundamentals driving the long-term trend. She views Trump’s threats against Iran as part of broader negotiation tactics and believes military escalation is unlikely.
“If we get a handshake in Geneva, the ‘safety trade’ will unwind with the force of a hurricane,” Bawden said. However, she added that if broader conflict erupts in the Middle East, gold prices could quickly rebound to $5,500 per ounce.
Analysts at UBS believe the full impact of geopolitical tensions surrounding Iran has yet to be priced into gold. Combined with the Fed’s expected rate-easing cycle and rising market demand, they see potential for another $1,000 gain by June.
“Despite the relatively muted response of gold to the latest rise in geopolitical tensions, we think prices can rise further,” the analysts wrote on Monday. “Our forecast is for the precious metal to reach $6,200/oz in the coming months as the key drivers underpinning its strong rally remain in place.”
UBS expects geopolitical risks to stay elevated. “The U.S. military buildup in the region is now bigger than the one off the coast of Venezuela earlier this year, and the likelihood of military action against Iran seems increasingly likely,” they noted.
The Fed’s easing cycle should also continue to support gold. “A weaker U.S. dollar and lower U.S. real interest rates are supportive of gold, and we believe this macro environment remains intact,” UBS said, adding that they expect two 25-basis-point rate cuts by the end of September.
The bank also forecasts gold demand to rise further in 2026. Data from the World Gold Council showed total gold demand exceeded 5,000 metric tons for the first time in 2025, and UBS expects this to pick up further, supported by rising investment activity and robust central bank purchases. Higher incomes in Asia should also underpin longer-term structural demand for gold jewelry.
Dominic Schnider, Head of Commodities & APAC Forex at UBS Wealth Management, said last week that with volatility subsiding, gold is poised to benefit from supportive fundamentals. “Gold will resume its climb, supported by central bank and investor demand, large fiscal deficits, lower real U.S. interest rates, and geopolitical risks, rising as high as $6,200/oz by mid-year,” he said.
Schnider’s $6,200 target represents a major upgrade from his forecast just a month ago, when he predicted gold would reach $5,000 by the end of the first quarter. Now, with multiple factors converging, the market appears to be heading toward new heights.
