Quick Read
- Gold price exceeded $5,000 per ounce on January 26, 2026, reaching a new record high.
- The surge is attributed to safe-haven demand, geopolitical tensions, and global debt concerns.
- Gold rallied 65% in 2025 and over 15% year-to-date in 2026.
- Other precious metals like silver, platinum, and copper have also seen significant gains.
- Analysts project gold could peak around $5,500 later in 2026.
NEW YORK (Azat TV) – Gold prices have officially surpassed the $5,000 per ounce threshold for the first time, extending a historic rally on Monday, January 26, 2026, as investors globally seek refuge from mounting geopolitical tensions, persistent inflation fears, and a looming global debt crisis. This unprecedented surge underscores a profound shift in investor sentiment, highlighting a collective move towards safe-haven assets amidst widespread economic and political uncertainty.
Gold’s Ascent Amid Global Uncertainty
The precious metal’s ascent past the significant $5,000 mark follows a remarkable period of growth, having surged 65% in 2025 and gaining more than 15% year-to-date in 2026. This record-breaking performance reflects a broad-based flight to safety, with gold serving as a traditional hedge against market volatility and economic instability. The rally is not isolated to gold; other precious metals, including silver, platinum, and copper, have also experienced significant price increases, indicating a wider trend across the commodities market.
In India, local gold prices mirrored the global trend, rising on Monday. Data compiled by FXStreet showed the price for gold stood at 14,970.54 Indian Rupees (INR) per gram, an increase from INR 14,713.91 on Friday. This upward movement in local markets further highlights the pervasive demand for gold as a store of value, particularly in economies susceptible to currency fluctuations and inflationary pressures.
Driving Forces Behind the Rally
Several interconnected factors are fueling gold’s extraordinary rally. Robin Brooks, Senior Fellow at the Brookings Institution, described the rise in precious metals prices as “breathtaking and profoundly scary,” noting it is “part of something much bigger.” Brooks attributes this surge to what he terms the “debasement trade,” where investors actively buy assets to protect against the erosion of purchasing power amid soaring government debt worldwide. He further suggested that the world is “at the start of a global debt crisis, with markets increasingly fearful governments will attempt to inflate away out-of-control debt.”
A declining US dollar is also playing a critical role. While the dollar remained relatively stable in the latter half of 2025, it began 2026 on a downward trajectory. Brooks explained that “a falling dollar will super-charge the rise in gold prices and the debasement trade because it boosts the purchasing power of non-dollar buyers.” Historically, gold has an inverse correlation with the US Dollar and US Treasuries, both major reserve and safe-haven assets. A weaker dollar typically makes gold more affordable for holders of other currencies, thereby increasing demand.
Beyond macroeconomic factors, geopolitical tensions have repeatedly triggered gold’s upward turns this year. Notable events include the US capture of Venezuelan leader Nicolás Maduro and President Donald Trump’s tariff threats in pursuit of Greenland. The ongoing conflict between Russia and Ukraine further contributes to global uncertainty, decreasing risk appetite and prompting investors to seek stability in tangible assets like gold. Additionally, US monetary policy easing, robust central bank purchases – with China, for example, extending its gold-buying spree for a fourteenth consecutive month in December – and record inflows into exchange-traded funds (ETFs) have provided a strong foundational demand for the yellow metal.
Analyst Outlook and Broader Market Impact
Analysts largely anticipate further gains for gold in the near term. Metals Focus, a prominent research consultancy, forecasts gold prices to peak around $5,500 later in 2026. Philip Newman, a director at Metals Focus, confirmed this outlook, stating, “We expect further upside. Our current forecast suggests that prices will peak at around $US5,500 later this year.” Investment bank Goldman Sachs recently raised its year-end price target for gold from $4,900 to $5,400, citing increased participation from private investors seeking to diversify portfolios and protect wealth amidst lingering global policy uncertainty.
The rally in gold is part of a broader surge across precious and industrial metals. Silver (SI=F) topped $100 for the first time on Friday, January 23, continuing its rise to hover above $107 on Sunday. Platinum (PL=F) also touched new highs, gaining over 40% so far this year. Copper (HC=F) rose to a record high above $13,000 per ton in London on Friday. While foreign central bank demand for gold has been strong amid trimmed exposure to US Treasurys, Robin Brooks of the Brookings Institution argues that this alone does not fully explain the massive rise, suggesting that “the fact that this is a broad bubble across all precious metals argues against central banks being a key driver.” This indicates a more widespread investor movement rather than just institutional buying.
The sustained record-breaking rally in gold, alongside other precious metals, underscores a deepening global apprehension regarding financial stability and geopolitical equilibrium, signaling that investors are increasingly turning away from traditional growth assets in favor of perceived safe havens as a fundamental risk mitigation strategy.