Jan 26 (Reuters) - Gold prices extended their record-setting rally to surge past $5,100 on Monday as central banks and investors sought refuge from geopolitical risks and Trump-induced market volatility.

Spot gold was up 2.2% at $5,093.96 an ounce by 0841 GMT after hitting a record $5,110.50. U.S. gold futures for February delivery gained ‌the same amount to $5,090.40.

Gold soared 64% in 2025 for its biggest annual gain since 1979, shattering multiple records on the ​back of safe-haven demand, U.S. monetary policy easing, robust central bank purchases and record ‍inflows into exchange-traded funds.

Prices have already risen about 18% since the ⁠start of this year.

U.S. ⁠President Donald Trump and the uncertainty he creates on multiple levels remain the main driver of surging prices and investment ‌momentum driven by a fear of missing out, ​said Ole Hansen, head of commodity strategy at Saxo Bank.

In his latest tariff threats, Trump said on Saturday that he would impose a 100% tariff ⁠on Canada if it follows through on ‍a trade ​deal with China. 

Meanwhile, the yen hit a two-month peak against the dollar as speculation grew over possible U.S.-Japan intervention while investors also unwound dollar positions ahead of ‍this week's Federal Reserve meeting and possible announcement of a new Fed chair.

The dollar index fell to a four-month low, indicating weakness that makes dollar-priced metals more attractive for overseas buyers. [USD/]

Analysts have said that gold has more room to climb this year, potentially towards $6,000, on mounting global tensions and strong demand from central banks as well as consumers.

Further upside ​cannot be ‍ruled out in stress scenarios, particularly if confidence in currencies or financial assets deteriorates further, said Alexander Zumpfe, precious metals trader at Heraeus Metals Germany, adding ​that such moves could be accompanied by sharp interim corrections.

Spot gold has cleared resistance at $5,070 and is expected to rise into a range of $5,154 to $5,206 an ounce, said Reuters technical analyst Wang Tao.

Eventually, it could climb to $5,427, he added.

Spot silver scaled new heights at $110.06 an ounce and was last up 6.2% at $109.36. 

Silver climbed above $100 for the first time on Friday, building on its record 147% rise last ​year as retail flows and momentum-driven buying compounded a prolonged spell of tightness in physical markets.

Spot platinum jumped by 4.4% to $2,887.76 an ounce after touching a record $2,897.35 while spot palladium climbed by 3.9% to $2,089.11 after registering a ‍more than three-year high of $2,095.19.