The world is witnessing an unprecedented surge in metal prices as gold has topped $5000 an ounce benchmark for the very first time, extending a historic rally as investors are looking at metals as the safe-haven asset amid global uncertainties.
On Monday, spot gold rose 1.98 percent to $5,081.18 per ounce. On Friday, silver blasted past $100 an ounce for the first time, building on its almost 150% rise last year.
In 2025, gold prices shot up by 65 percent, making it the best year since 1979. Since 2026, in just the first 26 days of this year, the prices have soared by 15 to 17 percent.
In the uncertain and difficult times, gold is considered the best refuge and yardstick of market anxiety. Now, it is emerging as the best hedge against geopolitical uncertainties.
Given the unprecedented increase in market rally, one must think of what’s driving this surge and what’s next for gold prices after the $5000 breakout.
Key forces behind the historic rally
The record-breaking 2026 market rally has been driven by a series of key events happening in the past months. For instance, Trump’s repeated threats to European allies to impose tariffs over the Greenland dispute had infused the sense of anxiety among the global investors.
Although the threats against NATO allies have climbed down, the global markets are still on edge amid a turbulent geopolitical environment.
Similarly, recently US President Donald Trump has threatened to impose 100 percent tariffs on Canada if the country enters a landmark deal with China.
Recently, the fears surrounding the US government shutdown in the wake of Minneapolis crackdown has added fresh fuel to the metal’s red-hot rally.
Moreover, the US-launched military operation in January to capture Venezuelan President Nicolas Maduro and Trump administration’s legal battle with Federal Reserve Chair Jerome Powell also pushed the investors to seek refuge in metal-based safe havens.
Other factors including the weak US dollar, higher-than-usual inflation, lower bond yields, prospect surrounding the interest rates as the Federal Reserve is expected to cut them this year, have led to increased demand for precious metals.
Undermining US position in global economic order
The latest catalyst “is effectively this crisis of confidence in the U.S. administration and U.S. assets, that was set off by some of the erratic decision-making from the Trump administration last week”, said Kyle Rodda, a senior market analyst at Capital.
“This Trump administration has caused a permanent rupture in the way things are done, and so now everyone’s kind of running to gold as the only alternative,” Rodda added.
According to Shaun Osborne, chief currency strategist at Scotiabank, “The U.S. is plainly for a lot of international investors becoming a less friendly place to do business with, and that is likely to have an impact on investment decisions going forward.”
What’s next for gold prices after the $5000 rally?
According to Philip Newman, the director at Metals Focus, “We expect further upside (for gold). Our current forecast suggests that prices will peak at around $5,500 later this year.”
Goldman Sachs analysts last week raised their forecast for gold to reach $5,400 an ounce by the end of 2026, citing central bank buying, private-sector diversification into gold, and “sticky” micro-risk hedges.
Surging past $5000, the Bank of America has portrayed the most aggressive outlook, projecting $6000 per ounce by Spring 2026.
JP Morgan predicts that the metal remains bullish for 2026 and 2027. Prices are expected to push toward $5,000/oz by the fourth quarter of 2026, with $6,000/oz a possibility longer term.
