Gold just hit a record $5,000. What’s driving the surge?

Updated Jan 26, 2026
By John Liu

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.

In this year’s first 26 days, the price of gold has jumped 15%; a historic rally that builds on a record-breaking year in 2025, when prices skyrocketed 65% – the largest annual gain since 1979.

Gold is often seen as a refuge in uncertain times and a barometer of market anxiety. And this latest surge has been driven by a series of market-destabilizing global and domestic moves by Trump –– from the now-revoked tariff threats against NATO allies over Greenland, to the military operation against Venezuela, and the criminal investigation into Federal Reserve Chair Jerome Powell.

Demand has also been driven by a weaker US dollar, higher-than-expected inflation, predictions the Fed will further cut interest rates this year, and the purchase of the precious metal by central banks around the world.

Gold was up 1.4% Sunday to $5,058 a troy ounce, as of 8:14 pm ET.

Silver, another safe-haven asset surging in value, rose 4.5% to $107.8 an ounce Sunday. Like Gold, Silver last year also recorded its best performance since 1979, with a 141% price increase.

Despite hitting the $5,000 benchmark, analysts remained largely bullish on gold, arguing prices could rise further as uncertainty persists.

Before the record rally, Goldman Sachs analysts had raised their forecasts of gold prices to $5,400 per troy ounce, citing private sector investors’ interests in the yellow metal due to “lingering global policy uncertainty,” according to a research note published by the investment bank last week.

Others saw even more room for gains. Bank of America’s chief investment officer Michael Hartnett said in a research note last week that gold prices could peak above $6,000.

Source: https://edition.cnn.com/2026/01/25/business/gold-record-trump-global-concerns-intl-hnk