Gold Breaches $5,000 Threshold as Global Instability Fuels Safe-Haven Demand

2026-01-26 economy

New York, Monday, 26 January 2026.
Spot gold shattered the $5,000 ceiling today amid rising geopolitical risks involving Greenland and Iran. This historic shift coincides with silver breaching the $100 mark for the first time.

A Historic Breach: Beyond the $5,000 Barrier

Following our previous report on gold breaching $4,900 amid rate cut expectations [https://wsnext.com/02d9d1d-Commodities-Inflation/], the precious metal has not only met but shattered the psychological ceiling of $5,000 per ounce. On Monday, January 26, spot gold prices extended their record-breaking rally, climbing 1.53% from the previous day to reach a new all-time high of $5,064.15 per ounce [3]. This latest surge represents a 16.87% increase over the past month alone, with the metal now trading 84.72% higher than at this time last year [3]. The momentum was evident as early as Sunday, when prices touched $5,051 [1], driven by an intensified flight to safety as investors grapple with a convergence of fiscal anxiety and escalating geopolitical friction [2].

Geopolitical Flashpoints: Greenland, Iran, and Trade Wars

The catalysts for this unprecedented valuation are deeply rooted in recent aggressive foreign policy maneuvers. Over the weekend, President Trump unsettled global markets by stating the U.S. would seek sovereignty over parts of Greenland that host American military bases, a move that has sparked friction between the U.S. and NATO [3][4]. Simultaneously, tensions in the Middle East have flared; speaking from Air Force One, President Trump announced that a U.S. “armada” is heading toward Iran, warning Tehran against restarting nuclear efforts or harming protesters [6]. These geopolitical shocks are compounded by renewed trade hostilities. On January 25, the President threatened to impose 100% tariffs on all Canadian exports to the U.S. if Ottawa finalizes a preliminary trade agreement with China [3][5].

Silver Joins the Rally: The $100 Milestone

While gold commands the headlines, silver has executed an equally historic breakout, surpassing the $100 per ounce mark on Friday, January 23 [1][5]. By Monday, silver spot prices had rallied a further 3% to trade at $106.1 per ounce, driven by both industrial demand and its role as a leveraged safe-haven asset [2]. The white metal has seen a staggering rise of approximately 40% since the beginning of 2026 alone [7]. This dual rally has significantly altered the gold-to-silver ratio, which has tightened from 105 ounces in April 2025 to just 50 ounces needed to buy one ounce of gold as of late January [7]. Analysts note that silver is currently in a “self-propelled frenzy,” benefiting from its lower unit price relative to gold while riding the same wave of geopolitical risk [7].

Institutional Outlook: Higher Targets and Central Bank Buying

Institutional sentiment suggests this rally has strong structural support beyond immediate geopolitical fears. Goldman Sachs has revised its forecast, lifting its December 2026 gold price target from $4,900 to $5,400 per ounce [2]. The bank cites “sticky” hedges against global macro-policy risks, particularly concerns regarding U.S. fiscal sustainability, as a key driver that will likely persist throughout the year [2]. Furthermore, central bank accumulation has accelerated significantly; purchases are now estimated to average 60 tonnes per month, a stark increase from the pre-2022 average of 17 tonnes [2]. With independent analysts forecasting potential highs of $6,400 this year [4], the market appears to be pricing in a prolonged period of economic and political instability.

Sources

Inflation Commodities