Gold Sets New High as Dollar Weakens and Inflation Stays Hot
Gold surged beyond $5,000 per ounce for the first time late Sunday, extending a historic run as investors piled into safe haven assets amid mounting geopolitical tensions and economic uncertainty.
The move marks a fresh milestone in a rally that has accelerated early in 2026. In the first 26 days of the year, gold rose about 15%, building on a record breaking 2025 in which prices gained roughly 65%, the largest annual increase in decades. The latest jump pushed gold to around $5,058 per ounce Sunday night, and prices continued reaching new highs into Monday trading as volatility persisted.
Politics and Geopolitics Fuel a Rush to Safety
Gold is often treated as a refuge during instability, and the current surge reflects a market rattled by rapid developments tied to the Trump administration’s policies and global flashpoints.
Reports cited investor concerns over shifting relations with allies, renewed tariff threats, and broader geopolitical risk. Market coverage also pointed to fresh unease following U.S. actions involving Venezuela, alongside escalating rhetoric affecting relations with Canada and Europe. Even when specific threats were later softened or reversed, investors appeared to price in a higher baseline of unpredictability.
Inflation Adds Momentum
Beyond geopolitics, macroeconomic forces have also pushed gold higher. A weaker U.S. dollar can make gold cheaper for non U.S. buyers, supporting demand. At the same time, higher than expected inflation and forecasts that the Federal Reserve could cut interest rates further in 2026 have helped lift non-yield assets like gold.
Central bank buying has remained another major driver, reinforcing a structural bid for the metal and tightening supply available to private investors.
Silver Joins the Rally
Silver also surged alongside gold, reflecting both safe haven demand and silver’s role as an industrial metal. Prices climbed sharply into record territory, with market reports noting outsized daily gains and heightened volatility. Some analysts have warned that silver’s rapid rise increases the risk of a pullback even if the broader trend remains supported by demand.
Analysts Targets Above $5,400
Despite gold already crossing $5,000, several major outlooks remain bullish. Goldman Sachs recently lifted its end 2026 forecast to $5,400 an ounce, citing persistent policy uncertainty and strong demand. Separately, Bank of America strategist Michael Hartnett has argued gold could peak above $6,000 if the current macro and policy dynamics continue to intensify.
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