Gold Surpasses $5,000 an Ounce Amid Global Uncertainty

Thu Jan 29 2026 13:30:06 GMT+0200 (Eastern European Standard Time)

The price of gold has reached a historic milestone, surpassing $5,000 an ounce for the first time, as investors seek safe-haven assets in an increasingly uncertain geopolitical landscape.

Gold prices have skyrocketed to over $5,000 an ounce, marking a significant turning point as global tensions, economic fears, and inflationary pressures drive investors towards precious metals. The surge follows a remarkable 60% increase in the previous year, driven by various geopolitical tensions and market uncertainties. The allure of gold as a stable investment is reinforced as demand grows, particularly in traditional markets like India and China.

The price of gold has risen above $5,000 (£3,659) an ounce for the first time ever, extending a historic rally that saw the precious metal jump by more than 60% in 2025.

This surge comes as tensions between the US and NATO over Greenland have added to rising concerns about financial and geopolitical instability. US President Donald Trump's trade policies have additionally worried markets, with threats of substantial tariffs creating further uncertainty.

Gold is perceived as a safe-haven asset that investors gravitate towards during turbulent times. Recently, silver has also made headlines, topping $100 an ounce for the first time, fueled by a remarkable 150% rise the previous year.

The increasing interest in precious metals can be attributed to various factors, including heightened inflation rates, a weakening US dollar, and significant purchases from central banks across the globe, alongside expectations that the US Federal Reserve may cut interest rates again this year.

Factors such as conflicts in Ukraine and Gaza, as well as geopolitical tensions surrounding Venezuela, have further propelled gold’s price. Notably, only about 216,265 tonnes of gold have ever been mined, with the bulk of these resources extracted since 1950.

According to the US Geological Survey, an estimated 64,000 tonnes of additional gold can still be mined from underground reserves, although overall supply growth is anticipated to plateau soon.

When you own gold, it's not tied to the debt of others, making it an excellent diversifier in today's uncertain world, explained Nicholas Frappell from ABC Refinery.

'People Go to Gold'

Since the beginning of 2025, gold has experienced unprecedented growth, underpinned by persistent economic anxieties and fluctuating market performance. This ensures the commodity frequently reaches new record high prices.

Experts note that as interest in gold rises, it is often due to expectations of reduced interest rates, which drive investors toward alternative assets like gold and silver.

Amidst these trends, gold purchases have surged beyond just investment purposes. Across many cultures, gold holds significance during festivals and celebrations — such as the upcoming Diwali in India, where buying gold is seen as bringing fortune and prosperity.

With demand expected to peak around cultural events like the Chinese New Year, analysts continue to observe gold’s rally, amid concerns about potential market changes stemming from unforeseen positive global news.