NEW YORK, Jan 26, 2026, 17:40 EST
- Gold topped $5,100 an ounce on Monday, setting a new record, then pulled back slightly.
- Silver surged to a new peak close to $118, pushing its 2026 rally even further.
- Traders cited trade and policy uncertainty as key factors, with some analysts cautioning that the recent move appears overstretched.
Gold surged past $5,100 an ounce Monday, with silver hitting another record high as investors flocked to precious metals amid renewed trade concerns. Spot gold reached $5,110.50 before easing back, while spot silver climbed to $117.69, staying above $113 in New York afternoon trading. “Gold prices continue to be supported by elevated geopolitical and economic uncertainty,” said Ryan McIntyre, president of Sprott Inc. 1
The timing of the burst is critical, coming just before this week’s Federal Reserve policy meeting and following renewed tariff threats from President Donald Trump against key allies, which has rattled markets. “It’s a crisis of confidence in the U.S. administration,” said Kyle Rodda, senior market analyst at Capital.com, who blamed erratic decision-making for driving investors into gold. Strong central bank buying and record inflows into gold-backed ETFs — funds that hold physical bullion — have also supported the rally. Metals Focus analyst Philip Newman predicts gold could hit around $5,500 an ounce this year. 2
Silver’s jump has been more pronounced, and sentiment is shifting fast. Barron’s described the metal’s rise as “parabolic,” pointing to its nearly vertical price charts. The surge is driven by silver’s dual role—as both an industrial commodity and a speculative play—with the AI boom adding fuel. But the magazine also warned of bubble-like risks, highlighting profit-taking and signs of overheating amid the rally. 3
Silver surged with one of the largest daily gains in decades, the Wall Street Journal noted, driven by fears of a potential U.S. government shutdown and tariff-related news boosting safe-haven demand. Gold hit another all-time high as the dollar slipped and investors sought shelter from shifting policy risks. 4
The rally has been gathering steam for days. Silver broke through $100 on Friday, driven by retail and momentum buyers piling into a market already tight on physical supply, Reuters reported. StoneX analyst Rhona O’Connell called it a “self-propelled frenzy” and flagged “amber wealth warnings,” while BNP Paribas strategist David Wilson predicted profit taking would come “sooner rather than later.” 5
Yahoo Finance reported Friday’s jump, noting gold hit its strongest week since 2020 and silver broke past $100. Some traders label this the “debasement trade,” wagering that paper currencies will lose buying power. 6
The rapid pace of the move works both ways. A firmer dollar, a hawkish shift from the Fed, or a wave of forced selling could send prices tumbling fast—silver in particular, given its tendency for sharper swings than gold.
Traders are focused on Wednesday’s Fed decision and the upcoming trade policy updates. Since gold doesn’t yield interest, rate expectations play a big role. The market is trying to gauge how much buying reflects genuine demand versus momentum that could reverse quickly.
