Gold rockets past historic $5,000 mark amid global chaos — what’s driving the frenzy?

Spot gold has shattered records, surging past $5,000 per ounce for the first time ever to hit $5,032 — a blistering 64% annual gain. Silver smashed its own record at $100, while platinum soared, signaling a full-blown precious metals bull apocalypse.

The yellow metal stood at Dh604.75/gram (24 carats), as per Gulf News morning live gold rate on January 26, 2026 (from Dh519.25 on January 2).

The explosive rally comes against a backdrop of geopolitical wildfires and unprecedented US monetary policy tremors, transforming gold from safe-haven into must-have asset for investors worldwide.

Gold briefly pulled back to $4,986.45/oz as of 8.47am Tokyo, but the price is still up 1.03% or +$50.69 higher, as per goldprice.com.

There are a number of factors behind the record run of the yellow metal.

Trump vs. The Fed: President Trump’s administration launched a criminal probe into Federal Reserve Chair Jerome Powell, igniting fears over central bank independence. Investors dumped dollars, piling into gold as the ultimate anti-Fed hedge — especially as steady interest rates make non-yielding bullion irresistible.

Geopolitics / flashpoints: Supreme Leader Khamenei has admitted "thousands killed" in crackdowns, while Trump hints at intervention, with a US armada en route to the Gulf.

Moreover, the arrest of Venezuela's Nicolas Maduro, with a new US-backed regime change has rattled Latin America, even as concerns over Greenland and Trump's 100% tariff threats against Canada, following the latter's "landmark" trade deal with China, sparks fears.

Central bank gold rush: China and emerging market banks bought more gold — price-insensitive buying that’s created a $5,000 floor. The message is clear: nations want hard assets.

In 2025, the People's Bank of China (PBoC) continued to increase its gold reserves for a 14th consecutive month as of late December, maintaining a consistent purchasing streak to diversify away from USD assets.

Data through 2025 indicates substantial accumulation, including significant additions in September (15 tonnes) and continued buying to reach approximately 74.15 million troy ounces by year-end, as per mining.com. 

Rate cut speculation: Despite current steady rates, markets are pricing aggressive Fed easing in 2026. Gold thrives when real yields collapse — and traders smell blood.

Debt, stagflation bets: America’s fiscal explosion meets global stagflation fears. "Digital gold" isn’t just crypto anymore — it’s bullion as the ultimate debasement hedge.

The question today: Is $5,000 gold the new floor, or just a launchpad to $6,000?

When central banks, Trump, and Tehran all agree on one asset, the rocket fuel is just getting started.