Gold Breaks $5,000 Mark for First Time

Gold crossed a major psychological milestone on Monday, breaching the $5,000 per ounce mark for the first time in international markets, as global investors rushed back to safe havens amid rising geopolitical and currency tensions. Although Indian commodity markets were shut for Republic Day, the rally overseas was sharp enough to grab attention across asset classes.

Prices touched an intraday high of $5,091.5 an ounce, gaining more than 2% in early trade. On Friday, gold had settled just below the landmark level at $4,979.7 on COMEX, making Monday’s move feel like a long-awaited breakout rather than a surprise.

Why Did Gold Suddenly Jump Past $5,000?

The latest spike came after a turbulent week globally. Tensions linked to Greenland and Iran unsettled markets, while a fresh bond selloff and wild swings in the Japanese yen added to investor nerves. Japan’s Nikkei 225 fell nearly 2% on Monday, underlining the risk-off mood.

Currency markets were equally jittery. The yen strengthened about 0.5% to 154.84 per dollar after volatile moves on Friday triggered speculation of possible intervention. Reports that the New York Federal Reserve conducted rate checks further fuelled those expectations.

Adding to the uncertainty were renewed trade related worries. US President Donald Trump warned over the weekend that he could impose a 100% tariff on Canada if Ottawa moves ahead with a proposed trade arrangement involving China. Although Canadian Prime Minister Mark Carney later clarified that there was no plan for a free trade deal with China, the initial headlines were enough to rattle sentiment.

Against this backdrop, investors did what they often do in nervous markets. They bought gold, pushing prices sharply higher.

Can Gold And Silver Climb Further From Here?

Market watchers believe the rally may not be over just yet. Global worries remain elevated, keeping demand for precious metals strong. Gold could test $5,200 levels in the near term.

Silver, often more volatile than gold, is already showing that extra punch. February silver futures jumped nearly 8% intraday to hit $108.78 an ounce. Silver could move towards the $110 to $115 range if the current momentum holds.

So far in 2026, both metals have extended their strong run from last year. Gold is up about 18%, while silver has surged more than 50%, nearly three times the pace of gold. Even though prices look overheated, analysts say the underlying drivers are still firmly in place.

What Should Investors Keep in Mind Now?

With Indian markets already open for trading today, traders are assessing the early reaction in domestic precious metal prices.

Beyond daily price action, a broader shift is playing out. Gold and silver are becoming core parts of modern portfolios, not just defensive hedges. Gold continues to attract central banks and long-term investors as protection against inflation and currency swings, while silver benefits from rising industrial demand in clean energy, electric vehicles, and advanced technology.

Investor attention this week will also turn to the US Federal Reserve meeting, which begins on Tuesday. Any signals on interest rates or the inflation outlook could shape the next leg of the move in precious metals.

For now, one thing is clear. In a world full of uncertainty, gold’s shine is hard to ignore.

Sources

Economic Times

Economic Times2