Gold Hits Record Above $5,000/oz, Silver Scales New Peak: What Investors Should Watch Next
Gold prices surged to an unprecedented milestone on Monday, crossing the $5,000 per ounce mark for the first time in history. The rally reflects heightened demand for safe-haven assets as global investors respond to geopolitical risks, policy uncertainty, and shifting expectations around interest rates. Silver also joined the rally, scaling fresh lifetime highs and outperforming gold on a percentage basis.
Gold and Silver Extend Historic Rally
In international markets, spot gold advanced 1.79% to trade around $5,071.96 per ounce, after touching an intraday high of $5,085.50. US gold futures for February delivery moved in tandem, rising to approximately $5,068.70 per ounce.
Silver prices posted an even sharper move. Spot silver jumped 4.57% to $107.65 per ounce, after hitting a record high of $108.60. The strong momentum in silver highlights increased speculative interest and its dual appeal as both a precious and industrial metal.
Key Drivers Behind the Precious Metals Surge
The latest rally builds on a strong long-term trend. Gold prices have already climbed 64% during 2025 and have added more than 17% so far in 2026. Several structural and near-term factors continue to support prices:
- Safe-haven demand: Rising geopolitical tensions and global trade uncertainties have pushed investors toward defensive assets.
- Monetary policy easing: Expectations of lower interest rates in the United States have reduced the opportunity cost of holding non-yielding assets like gold.
- Central bank buying: Strong and consistent gold purchases by central banks, including continued buying by China, have provided a firm demand base.
- ETF inflows: Record inflows into gold-backed exchange-traded funds have reinforced upward momentum.
Domestic Market Update
In India, the Multi Commodity Exchange (MCX) remained closed on Monday due to Republic Day. However, domestic prices have already reflected the global surge.
Over the past week, MCX gold futures jumped by ₹13,520, or 9.5%, reaching an all-time high of ₹1,59,226 per 10 grams. Silver prices rose even more sharply, surging by ₹46,937, or 16.3%, to cross the ₹3 lakh per kilogram mark for the first time.
What Lies Ahead for Gold and Silver?
Analysts expect bullion prices to remain firm in the near term, with volatility likely around key global events. Market participants are closely tracking the upcoming US Supreme Court hearing related to trade tariffs, as well as the next interest rate decision by the US Federal Reserve.
Domestically, attention will shift to the Union Budget 2026, scheduled for February 1. Any changes in import duties, taxation, or fiscal measures could influence sentiment in the Indian bullion market.
Experts suggest that the broader trend for precious metals remains positive, and any short-term corrections may attract buying interest. Investors will also monitor inflation data from major economies, trade indicators from China, and commentary from global central bank officials for further cues.
Conclusion
With gold above $5,000 per ounce and silver at record highs, precious metals have firmly established themselves as key assets in an uncertain global environment. While short-term fluctuations are inevitable, the underlying fundamentals continue to support a bullish outlook.
Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.
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