Gold Rushes Past $5,000 to Record High

Spot gold prices shot past $5,000 per ounce for the first time in early morning global trade on Monday as investors continued to park funds in the bullion amid geopolitical tensions and other factors.

Spot gold ended Friday at $4,982 per ounce. On Sunday, it was trading at $5,080, as of 10:10 p.m. ET, after exceeding $5,093—up nearly 2 percent from Friday’s close. Since Jan. 19, gold prices have registered gains every single day. Gold opened the year at around $4,329.

The gold rally is “supported by a weaker dollar, escalating geopolitical concerns, continued central bank buying, and mounting worries over the Federal Reserve’s independence,” ING Bank said in a Jan. 23 report.

Since Jan. 19, the U.S. dollar index has declined by over 2 percent.

Since gold is priced in dollars internationally, a weaker dollar makes the bullion cheaper for buyers in other currencies, thereby triggering global demand for the metal.

Meanwhile, central banks are splurging on gold. The yellow metal recently overtook U.S. treasuries in terms of share of global central bank reserves. This is the first such instance since 1996. Morgan Stanley called this development a “powerful signal” that investors are confident in the long-term value of the bullion.

The World Gold Council said in a Jan. 6 report that global central banks bought a net 45 metric tons of gold in November, which though slightly down from October, “has remained elevated compared to the earlier months of this year.”

In its Commodities Outlook 2026 report released last month, ING Bank predicted the gold bull run to continue this year as well. However, it also warned about a potential decline in prices.

“Downside risks include a major market sell-off, which could force investors to dump gold to raise cash. Other downside risks include reduced safe haven demand amid easing geopolitical tensions. Central banks selling their gold reserves pose another risk to our outlook,” the report said.

“However, we expect the downside to be limited as any weakness will likely attract renewed interest from both retail and institutional buyers.”

In addition to gold, silver prices are also surging. Last week, silver hit the $100 per ounce level for the first time. Spot silver was trading at $108.95 in early morning global trade on Monday.