Gold tops US$5,000 as global upheaval fuels precious metals rally

Published Mon, Jan 26, 2026 · 08:03 AM — Updated Mon, Jan 26, 2026 · 08:21 AM

[SINGAPORE] Gold rose beyond US$5,000 an ounce for the first time, extending a breakneck rally fuelled by US President Donald Trump’s reshaping of international relations and investor flight from sovereign bonds and currencies.

Bullion climbed in early trading on Monday (Jan 26), having gained 8.5 per cent last week as a weaker dollar reinforced demand. The Bloomberg Dollar Spot Index, a key gauge of the US currency, fell 1.6 per cent to record its biggest weekly decline since May, making precious metals cheaper for most buyers. Silver also hit a record high on Monday.

Gold’s record-breaking rally, the metal has more than doubled over the last two years, drives home bullion’s historic role as a gauge of fear in markets. Fresh from its best annual performance since 1979, it’s gained a further 15 per cent so far this year as heightened geopolitical risks have added impetus to the so-called debasement trade, whereby investors retreat from currencies and Treasuries.

In recent weeks, the US administration’s actions, attacks on the independence of the Federal Reserve, threats to annexe Greenland, military intervention in Venezuela, have spooked markets. For investors looking to navigate this uncertainty, the haven appeal of gold has rarely been more attractive.

“Gold is the inverse of confidence,” said Max Belmont, a portfolio manager at First Eagle Investment Management. “It’s a hedge against unexpected bouts of inflation, unanticipated drawdowns in the market, flare-ups in geopolitical risk.”

Investors are waiting for Trump’s pick for the next Fed chair after the US president said that he has finished interviewing candidates, reiterating that he has someone in mind for the job. A more dovish chair would increase bets on further interest-rate cuts this year, a positive for non-yielding bullion, after three successive reductions.

Gold rose 0.8 per cent to US$5,029.05 an ounce as at 7.22 am in Singapore. Silver advanced 1.7 per cent to US$104.9148. Palladium climbed, while platinum declined. BLOOMBERG