Gold crosses $5,000 for first time as markets brace for more turmoil amid global tensions, dollar slide
Spot gold climbed 1.79 per cent to $5,071.96 per ounce by early Asian trade, after touching an intraday peak of $5,085.50. US gold futures for February delivery rose by a similar margin to $5,068.70 per ounce.
- Jan 26, 2026,
- Updated Jan 26, 2026 1:53 PM IST
Gold prices surged to an unprecedented high above the $5,000-per-ounce mark on Monday, extending a historic rally as investors intensified their flight to safety amid escalating geopolitical and macroeconomic uncertainty.
Spot gold climbed 1.79 per cent to $5,071.96 per ounce by early Asian trade, after touching an intraday peak of $5,085.50. US gold futures for February delivery rose by a similar margin to $5,068.70 per ounce. The precious metal’s sharp rise underscores a growing preference for defensive assets at a time when confidence in global politics, currencies, and financial markets remains fragile.
The rally has been mirrored in domestic markets as well. On the Multi Commodity Exchange (MCX), gold futures had closed the previous session at Rs 1,55,963 per 10 grams of 24-carat purity, while prices hit an all-time high of Rs 1,58,899 per 10 grams on January 23, 2026. The commodity markets are closed today for Republic Day.
Surging gold prices
The latest leg of the rally has been fuelled by expectations of further interest rate cuts by the US Federal Reserve. Lower interest rates reduce the opportunity cost of holding non-yielding assets such as gold, making the metal more attractive during periods of monetary easing. Markets are increasingly pricing in a more accommodative policy stance from the Fed as economic growth concerns and financial volatility persist.
Geopolitical tensions: Ukraine, Gaza, Greenland
Geopolitical tensions have added another powerful tailwind. Fresh strains between the United States and NATO over Greenland, continued conflicts in Ukraine and Gaza, and heightened diplomatic friction involving Venezuela have kept risk appetite subdued. Over the weekend, US President Donald Trump threatened to impose a 100 per cent tariff on Canada should it proceed with a trade deal with China, reinforcing fears of renewed trade disruptions. These developments have strengthened gold’s appeal as a hedge against political and economic instability.
Gold in 2025
The rally follows a stellar performance in 2025, when gold prices soared 64 per cent, supported by sustained safe-haven demand, easing US monetary policy, and aggressive central bank buying. China extended its gold accumulation for a fourteenth consecutive month in December, while exchange-traded funds recorded record inflows. So far this year, prices have already gained more than 17 per cent, pointing to continued momentum.
According to Kyle Rodda, senior market analyst at Capital.com, the latest surge reflects a deeper “crisis of confidence” in US leadership and assets, triggered by what he described as erratic policy decisions from the Trump administration. “This administration has caused a permanent rupture in the way things are done, and so now everyone’s running to gold as the only alternative,” he said.
Currency movements have also played a crucial role. A strengthening Japanese yen dragged the US dollar lower in early trade, as investors cut dollar positions ahead of the Federal Reserve’s policy meeting. A weaker dollar typically boosts gold demand by making the metal cheaper for holders of other currencies.
Market analysts remain bullish on the outlook. Philip Newman, director at Metals Focus, said prices could peak around $5,500 later this year, although intermittent pullbacks are likely as investors book profits. “Each correction is expected to be short-lived and met with strong buying interest,” he noted. Longer-term forecasts from commodity analysts see gold potentially climbing to $5,550 and even $7,000 per ounce over time.
Rahul Gupta, Chief Business Officer at Ashika Group, said gold’s surge reflects a convergence of global risk factors and supportive macroeconomic conditions. He highlighted geopolitical tensions, a softer dollar, and expectations of Fed rate cuts as key drivers behind sustained inflows into precious metals. Apurva Sheth, Head of Market Research at Samco Securities, added that while near-term consolidation is possible, gold remains structurally well positioned as a long-term portfolio anchor rather than a short-term trade.
(With Reuters inputs)
Gold prices surged to an unprecedented high above the $5,000-per-ounce mark on Monday, extending a historic rally as investors intensified their flight to safety amid escalating geopolitical and macroeconomic uncertainty.
Spot gold climbed 1.79 per cent to $5,071.96 per ounce by early Asian trade, after touching an intraday peak of $5,085.50. US gold futures for February delivery rose by a similar margin to $5,068.70 per ounce. The precious metal’s sharp rise underscores a growing preference for defensive assets at a time when confidence in global politics, currencies, and financial markets remains fragile.
The rally has been mirrored in domestic markets as well. On the Multi Commodity Exchange (MCX), gold futures had closed the previous session at Rs 1,55,963 per 10 grams of 24-carat purity, while prices hit an all-time high of Rs 1,58,899 per 10 grams on January 23, 2026. The commodity markets are closed today for Republic Day.
Surging gold prices
The latest leg of the rally has been fuelled by expectations of further interest rate cuts by the US Federal Reserve. Lower interest rates reduce the opportunity cost of holding non-yielding assets such as gold, making the metal more attractive during periods of monetary easing. Markets are increasingly pricing in a more accommodative policy stance from the Fed as economic growth concerns and financial volatility persist.
Geopolitical tensions: Ukraine, Gaza, Greenland
Geopolitical tensions have added another powerful tailwind. Fresh strains between the United States and NATO over Greenland, continued conflicts in Ukraine and Gaza, and heightened diplomatic friction involving Venezuela have kept risk appetite subdued. Over the weekend, US President Donald Trump threatened to impose a 100 per cent tariff on Canada should it proceed with a trade deal with China, reinforcing fears of renewed trade disruptions. These developments have strengthened gold’s appeal as a hedge against political and economic instability.
Gold in 2025
The rally follows a stellar performance in 2025, when gold prices soared 64 per cent, supported by sustained safe-haven demand, easing US monetary policy, and aggressive central bank buying. China extended its gold accumulation for a fourteenth consecutive month in December, while exchange-traded funds recorded record inflows. So far this year, prices have already gained more than 17 per cent, pointing to continued momentum.
According to Kyle Rodda, senior market analyst at Capital.com, the latest surge reflects a deeper “crisis of confidence” in US leadership and assets, triggered by what he described as erratic policy decisions from the Trump administration. “This administration has caused a permanent rupture in the way things are done, and so now everyone’s running to gold as the only alternative,” he said.
Currency movements have also played a crucial role. A strengthening Japanese yen dragged the US dollar lower in early trade, as investors cut dollar positions ahead of the Federal Reserve’s policy meeting. A weaker dollar typically boosts gold demand by making the metal cheaper for holders of other currencies.
Market analysts remain bullish on the outlook. Philip Newman, director at Metals Focus, said prices could peak around $5,500 later this year, although intermittent pullbacks are likely as investors book profits. “Each correction is expected to be short-lived and met with strong buying interest,” he noted. Longer-term forecasts from commodity analysts see gold potentially climbing to $5,550 and even $7,000 per ounce over time.
Rahul Gupta, Chief Business Officer at Ashika Group, said gold’s surge reflects a convergence of global risk factors and supportive macroeconomic conditions. He highlighted geopolitical tensions, a softer dollar, and expectations of Fed rate cuts as key drivers behind sustained inflows into precious metals. Apurva Sheth, Head of Market Research at Samco Securities, added that while near-term consolidation is possible, gold remains structurally well positioned as a long-term portfolio anchor rather than a short-term trade.
(With Reuters inputs)