economy
January 26, 2026
Gold just hit a record $5,000. What’s driving the surge?
Gold prices surged beyond $5,000 per ounce for the first time late Sunday, as investors rushed to the safe-haven asset as concern spread that US President Donald Trump is upending relations with key allies, from Europe to Canada.
TL;DR
- Gold prices surpassed $5,000 per ounce for the first time on Sunday.
- Gold prices have increased by 15% in the first 26 days of the year.
- Last year, gold prices rose by 65%, the largest annual gain since 1979.
- Investor rush to gold is driven by concerns over US President Donald Trump's actions impacting relations with allies.
- Other factors contributing to the surge include a weaker US dollar, higher inflation, potential Fed rate cuts, and central bank purchases.
- Silver also saw significant gains, rising 4.5% to $107.8 per ounce.
- Analysts predict further increases in gold prices due to ongoing global policy uncertainty.
- Goldman Sachs and Bank of America analysts have raised their gold price forecasts.
- Trump's actions, including tariff threats, military operations, and renewed attacks on the Fed chair, have fueled market uncertainty.
- Federal prosecutors opened a criminal investigation into Fed Chair Jerome Powell, raising questions about the central bank's independence.