Amidst the increasing demand for safe investment in the international market, gold prices have created a new history. On Monday, January 26, 2026, gold crossed the $5,000 ($) per ounce level for the first time. According to the report, spot gold rose by 1.98% to $5,081.18 an ounce, while it also touched an all-time high of $5,092.71 during trading. At the same time, US gold futures for February delivery rose 2.01% to close at $5,079.30 an ounce.
The thought of avoiding risk increased the shine
According to experts, increasing risk aversion among investors, geopolitical tensions and fears of trade war have promoted rapid buying of gold. Along with this, the weak US dollar also provided strong support to the yellow metal. The dollar index has lost nearly 2% in the last six trading sessions, making gold more attractive to investors in other currencies, Bloomberg reports.
Support came from Trump’s tariff threats
US President Donald Trump’s new tariff threats are also considered to be an important reason behind the current rally of gold. Over the weekend, Trump warned that if Canada goes ahead with a trade deal with China, it would face 100% tariffs. Additionally, Trump also threatened to impose 200% tariffs on French wine and Champagne to put pressure on French President Emmanuel Macron to join his ‘Board of Peace’ initiative. These statements come at a time when global tensions are already heightened by issues such as military intervention in Venezuela, threats to annex Greenland and weakening the autonomy of the US Federal Reserve.
Strongest bull run since 1979
Last year, gold recorded its best bull run since 1979, when its prices increased by more than 75%. This bullishness continues in the year 2026 and so far on month-to-date basis, gold has risen by about 17%, making it a major indicator of fear and uncertainty in the market.
Other major factors supporting gold
- Continued purchases by central banks, including emerging markets
- Strong investment inflows into gold ETFs
- Global uncertainty created by Russia-Ukraine war and Israel-Iran conflict
Will gold go higher?
Analysts still remain bullish on gold. Goldman Sachs recently raised its gold price target for December 2026 from $4,900 to $5,400 an ounce. The bank says that the private sector and central banks of emerging markets are increasingly diversifying their reserves into gold. It is estimated that prices could peak around $5,500 an ounce by the end of this year.
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