Gold Prices Cross $5,000 for First Time as Safe-Haven Demand Surges; Analysts See More Upside
Gold prices extended their historic rally on Monday, January 26, crossing the $5,000-per-ounce mark for the first time ever in international markets, as investors rushed to safe-haven assets amid rising geopolitical tensions, trade war fears, and a weakening US dollar.
The precious metal has emerged as a key barometer of market anxiety. After recording its strongest bull run since 1979 last year with gains of over 75%, gold has already climbed 17% month-to-date in 2026, underlining its role as a hedge against global uncertainty.
Gold rate today: What’s driving the surge?
According to a report by Reuters, spot gold jumped 1.98% to $5,081.18 per ounce by 0323 GMT, after touching an intraday high of $5,092.71. Meanwhile, US gold futures for February delivery rose 2.01% to $5,079.30 per ounce.
The rally gathered momentum as risk-off sentiment dominated global markets. Escalating geopolitical risks, renewed trade tensions, and concerns over global economic stability have boosted demand for the yellow metal. A weaker US dollar further supported prices, making gold cheaper for holders of other currencies.
Trump tariff threats and geopolitical risks fuel gold rally
Fresh tariff threats from Donald Trump added to investor unease over the weekend. The US President warned of imposing 100% tariffs on Canada over potential trade ties with China and threatened 200% tariffs on French wines and champagne, reportedly to pressure Emmanuel Macron on geopolitical issues.
These developments follow a series of global flashpoints, including military intervention in Venezuela, threats related to Greenland, and concerns over the Trump administration’s stance toward the US Federal Reserve’s independence—all of which have reinforced gold’s appeal as a safe haven.
Weak dollar, central bank buying support prices
Apart from safe-haven demand, gold has benefited from sustained buying due to a softer US dollar. As per Bloomberg, a key index tracking the US currency has fallen nearly 2% over the last six sessions.
Strong central bank purchases, robust ETF inflows, rising debt levels in advanced economies, and ongoing conflicts such as the Russia-Ukraine war and Israel-Iran tensions have also played a major role in supporting gold prices over the past year.
India gold prices today
In domestic markets, commodity trading remained closed on Monday due to Republic Day. Trading on the MCX will resume on January 27, with gold prices expected to react sharply as domestic markets catch up with the international rally.
Gold price outlook: More gains ahead?
Market analysts remain optimistic about gold’s prospects. Goldman Sachs recently raised its gold price target to $5,400 per ounce for December 2026, up from an earlier forecast of $4,900, citing diversification by private investors and emerging market central banks.
Philip Newman, Director at Metals Focus, told Reuters that gold prices could peak around $5,500 later this year, driven by sustained global uncertainty.
Adding a more aggressive outlook, Robert Kiyosaki said gold could eventually rise to $27,000, though he did not specify a timeline.
With macroeconomic risks, geopolitical tensions, and currency volatility showing little sign of easing, analysts believe gold’s long-term bullish momentum remains firmly intact.
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