Gold prices surpass $5,000: Soaring amid global trends
Gold prices crossed a psychological and historical threshold late Sunday, surging past $5,000 per troy ounce. This unprecedented rally marks a 15% increase in just the first 26 days of 2026, building on a staggering 65% gain in 2025—the metal’s most explosive performance since 1979.
As investors scramble for “safe-haven” assets, the message from the markets is clear: global anxiety is reaching a boiling point.
A Perfect Storm of Geopolitical Instability
The primary engine behind this rally appears to be the “policy whiplash” originating from the White House. President Donald Trump’s recent maneuvers have rattled international relations and upended long-standing alliances.
Trade Tensions with Allies: Markets were unsettled by revoked tariff threats against NATO allies over the proposed acquisition of Greenland. More recently, the threat of 100% tariffs on Canadian imports—should Ottawa pursue trade deals with China—has raised the specter of a trade war in North America.
Military Intervention: The U.S. capture of Venezuelan President Nicolás Maduro and escalating rhetoric toward the Iranian regime have heightened the global “risk-off” sentiment.
Domestic Uncertainty: In an unprecedented move, federal prosecutors have opened a criminal investigation into Federal Reserve Chair Jerome Powell. This attack on the independence of the U.S. central bank has sent shockwaves through the financial sector.
Economic Fundamentals: Dollar and Rates
Beyond the headlines, several economic pillars are supporting the bullion boom:
A Weakening Dollar: As the U.S. dollar softens, gold becomes cheaper for international buyers, driving up global demand.
Inflationary Pressure: Higher-than-expected inflation data is eroding the purchasing power of fiat currency, pushing investors toward tangible assets.
Interest Rate Expectations: Analysts predict the Fed will continue to cut interest rates this year, making non-yielding assets like gold more attractive compared to bonds.
Central Bank Accumulation: Central banks worldwide are aggressively diversifying their reserves away from the dollar and into precious metals.
Silver Follows Suit : Silver is also experiencing a renaissance, jumping 4.5% to $107.80 per ounce on Sunday. Following a 141% price increase in 2025, silver is confirming that the flight to safety is not limited to gold, but is a broader move across the precious metals sector.
Analyst Outlook: How High Can It Go?
Despite the record-breaking prices, many Wall Street giants believe the ceiling is still far off.
“Lingering global policy uncertainty is driving private sector interest to levels we haven’t seen in decades.” — Goldman Sachs (Current forecast: $5,400)
Bank of America’s Chief Investment Officer, Michael Hartnett, is even more bullish, suggesting that if current volatility persists, gold could peak above $6,000.
Published on 29 / 01 /2026
By Nicholas.