Gold Price in Historic Surge As Economy Continues To Boom

Gold Surges Past $5,000 an Ounce for First Time Ever Amid Global Uncertainty

26 January 2026 

Gold prices have soared above $5,000 per ounce, marking an unprecedented milestone and extending a historic rally that saw a 60% increase throughout 2025. This surge is driven by escalating geopolitical tensions, including US-NATO disputes over Greenland and aggressive trade policies by US President Donald Trump, who recently threatened a 100% tariff on Canada if it strikes a deal with China.

Precious metals like gold and silver are traditionally seen as safe havens during times of uncertainty. Silver recently topped $100 an ounce, following a nearly 150% rise last year.

Other key factors fueling demand include elevated inflation, a weakening US dollar, central bank purchases, and expectations of further US Federal Reserve interest rate cuts. Conflicts in Ukraine and Gaza, alongside political instability such as the US’s seizure of Venezuelan President Nicolás Maduro, have also contributed to price gains.

Only around 216,265 tonnes of gold have ever been mined, roughly enough to fill three to four Olympic-sized swimming pools. Mining production is expected to plateau, with an estimated 64,000 tonnes left underground.

Experts highlight gold’s appeal as a non-debt-backed asset and a diversifier amid economic uncertainty. The 2025 gold rally was the strongest since 1979, spurred by market fears over tariffs and overvalued tech stocks, including those tied to artificial intelligence.

Culturally, gold remains highly significant. In India, gold is purchased during festivals like Diwali as a symbol of wealth and luck, with Indian households holding $3.8 trillion worth of gold, nearly 89% of the country’s GDP. China, the largest consumer market, also sees seasonal spikes around celebrations such as Chinese New Year.

While the market’s future remains sensitive to news developments, gold’s role as a hedge against global instability continues to solidify.

source,BBC