Gold prices reached a milestone on 24 January 2026. The metal crossed the $5,000 per ounce threshold during trading. This event represents a peak in the commodity markets. Investors reacted to shifting global conditions by moving capital into bullion.
The spot price reached $5,058 per ounce by the evening. This value marks a 15 per cent increase within the first month of 2026. Market data confirms that gold rose 65 per cent throughout 2025. These figures indicate a sustained upward trend in the precious metals sector.
Gold prices reached a new record high
Trading Benchmarks and Price Data
Gold reached an intraday high of $5,009 on Saturday. The price settled at $5,058 during the following session. Trading volume increased as participants sought safety from currency volatility. The metal now trades at levels higher than any point in modern history.
The US Dollar Index fell to 97.45 during the same period. This decline represents a multi-month low for the currency. Investors sold dollars to acquire gold assets. This movement reflects a decrease in confidence regarding fiat currency stability.
Gold prices have risen over the past year
Central Bank Accumulation and Reserves
Central banks remain primary buyers of gold in 2026. These institutions purchased 1,000 tonnes of metal over the last three years. Demand from banks in China and the Gulf region stays elevated. These countries seek to diversify their reserves away from the dollar.
J.P. Morgan Global Research predicts quarterly demand of 585 tonnes. Central banks account for 190 tonnes of this total. This structural shift provides a floor for prices. Official reserves now consist of nearly 36,200 tonnes of gold globally.
Geopolitical Factors and Trade Policy
US trade policies influence the current market rally. Tensions between the United States and NATO allies increased recently. Disputes over Greenland and tariff threats create uncertainty for global trade. These events prompt investors to seek protection in tangible assets.
Military operations in South America also impact market sentiment. Investors monitor developments in Venezuela and the Mediterranean. These conflicts threaten energy security and trade routes. Bullion serves as a hedge against such systemic risks.
Inflation and Monetary Policy Trends
Inflation data remains a concern for market participants. Consumer price expectations stay near 4 per cent for January 2026. The Federal Reserve faces pressure to adjust interest rates. High inflation typically increases the appeal of gold for wealth preservation.
- PCE inflation figures matched market expectations in November.
- The Federal Reserve might keep interest rates steady.
- Markets price in two rate cuts for later this year.
- Lower rates reduce the opportunity cost of holding gold.
Silver also experienced a price surge alongside gold. The metal broke past $100 per ounce for the first time. The gold-to-silver ratio shifted as industrial demand increased. Investors treat silver as a core asset in the current economy.
Institutional Demand and ETF Inflows
Investment in gold-backed exchange-traded funds rose in 2025. This trend continues into the first quarter of 2026. Inflows into these funds reached 220 tonnes last year. Institutional investors use these vehicles to gain exposure to the metal.
Bar and coin demand exceeded 1,200 tonnes annually. Retail buyers in India and China contribute to this figure. These participants purchase physical gold for long-term storage. This activity reduces the available supply in the open market.
Expert Market Commentary
Analysts provide insights into the current price action. Natasha Kaneva of J.P. Morgan shared her view on the rally. “While this rally in gold has not, and will not, be linear, we believe the trends driving this rebasing higher in gold prices are not exhausted,” she stated.
Fawad Razaqzada from Forex.com also noted the market behaviour. “Over the past few days, gold’s price action has been textbook safe-haven behaviour,” he observed. Neil Wilson of Saxo UK commented on geopolitical risks. “The extreme tail risk of a US military intervention in Greenland was never being priced by markets,” he said.
Future Price Projections
Financial institutions updated their forecasts for the coming years. Goldman Sachs targets a price of $5,000 by the end of 2026. UBS strategists raised their target to $5,400 for the third quarter. These projections suggest further upside for the metal.
- P. Morgan expects an average price of $5,055 in late 2026.
- Bank of America sees a target of $5,000 per ounce.
- TD Securities predicts new highs throughout the year.
- Wells Fargo forecasts prices between $4,500 and $4,700.
Some analysts expect a period of consolidation. Prices might fluctuate after such a rapid increase. However, the long-term trend remains positive according to technical data. Support levels sit at $4,775 per ounce for the short term.
Impact on Global Equity Markets
Equity markets showed signs of weakness as gold rose. Investors rotated capital out of stocks and into havens. The shift reflects a broad mood of risk aversion. Concern over trade disputes between the US and EU weighs on sentiment.
Foreign investors withdrew capital from emerging markets recently. This movement strengthens the demand for gold in those regions. Local currency weakness also supports domestic gold prices. The Indian Rupee traded below 90.90 against the dollar during this rally.
Technical Indicators and Market Momentum
Technical analysis shows strong momentum for the metal. The Relative Strength Index stays in overbought territory. This indicator suggests intense buying pressure from traders. The moving average convergence divergence also trends upward.
Prices remain above the uptrend line established in 2025. A break above $5,060 could lead to $5,220. Market participants watch these levels for signs of the next move. The current rally sets a foundation for future growth in the sector.
