SINGAPORE, Jan 26, 2026, 09:53 SGT
- Spot gold climbed 0.85% to $5,024.95 an ounce, while U.S. February futures edged up to $5,024.60
- Silver hovered near $104.72, while platinum stood at $2,767 and palladium at $2,013.50
- Analysts predict further gains but caution that rapid rises may lead to steep sell-offs
Gold surged past $5,000 an ounce on Monday, hitting a new record amid a fresh rush to safe-haven assets. Spot gold, for immediate delivery, climbed 0.85% to $5,024.95 per troy ounce by 2341 GMT. Meanwhile, U.S. gold futures for February delivery ticked up 0.91% to $5,024.60.
The shift came after a volatile week in currencies and bonds, rattled by tensions tied to Greenland and Iran that spooked markets. The yen swung wildly, underscoring the instability. The dollar index lingered close to a four-month trough as investors eyed the Federal Reserve’s policy meeting scheduled for later this week.
That blend has made bullion a real-time barometer of market jitters. Once it breaks $5,000, funds usually flow into the broader complex, notably silver, which often sees more volatile price moves.
Gold has surged over 16% this year, following a 64% leap in 2025. The rally is backed by U.S. monetary easing, solid central bank purchases, and ETF inflows—these stock-like funds hold bullion. China kept the momentum going, buying gold for the 14th month in a row in December, adding fresh demand.
Philip Newman, director at Metals Focus, projected prices to “peak at around $5,500 later this year.” He noted some profit-taking as prices climb, but any pullback is likely to be “short-lived” and quickly met with fresh buying. BusinessToday
Independent analyst Ross Norman laid out a broader forecast, predicting silver could hit $6,400 an ounce this year with an average around $5,375. Spot silver climbed 1.72%, reaching $104.72 an ounce. Spot platinum held steady at $2,767, while palladium inched higher to $2,013.50.
Silver stole the spotlight, breaking past $100 an ounce on Friday. Newman flagged concerns over tariffs and the “still low physical liquidity in the London market” as key drivers. Independent metals trader Tai Wong described the gold surge as “more than a perfect storm,” seeing it as a clear signal of changing times. Kitco
BullionVault, serving private investors, reported Friday’s gain as the sharpest weekly surge in gold prices since the early days of the COVID-19 pandemic, with London bullion hitting about $4,987. The firm also highlighted consecutive record highs in Shanghai benchmarks, indicating robust local demand amid constrained supply.
The rapid rise sets the stage for a potential pullback. The Financial Times noted gold surged roughly 8% last week — its biggest weekly jump since the 2008 financial crisis — a move prone to quick profit-taking if geopolitical tensions ease or the dollar finds support.
Currency traders are eyeing thin liquidity in early Asia, along with the possibility of official moves to prop up the yen. That’s keeping volatility elevated and weighing on the dollar. If that pressure eases—or if U.S. rate forecasts shift—it could send metals prices tumbling as fast as they climbed.
