Gold Price Smashes Records, Surpasses $5,300 Per Ounce Amid Global Turmoil

LONDON, 28 January 2026 – The price of gold has entered uncharted territory this week, shattering the symbolic $5,000 barrier and soaring to a record high above $5,300 per ounce. The unprecedented rally, driven by a potent mix of geopolitical instability, a plunging US dollar, and aggressive central bank buying, has forced major financial institutions to dramatically revise their forecasts upwards, with some analysts now eyeing a climb towards $7,000.

The Rally in Context

The surge has been breathtaking in its speed and scale. After opening the week at approximately £3,649 per ounce in sterling terms, the spot price for gold denominated in US dollars powered through the $5,000 level for the first time in history, before extending gains to reach $5,416. According to Trading Economics data, this represents a single-day jump of 4.53% on 28 January, capping a monthly gain of nearly 25%. Over the past year, the precious metal’s value has skyrocketed by over 96%.

Key Drivers Behind the Surge

Analysts point to a confluence of factors fuelling the historic rally. Primarily, investors are flocking to gold’s traditional role as a safe-haven asset amidst heightened global uncertainty. Recent geopolitical flashpoints—including the US capture of Venezuelan President Nicolás Maduro and escalating tensions between the US and Iran—have rattled markets. Furthermore, a major diplomatic rift between the US and NATO over Greenland has added to the climate of fear.

Monetary policy is also a critical factor. The US dollar has plunged to four-year lows, partly due to market expectations of Federal Reserve interest rate cuts and comments from the Trump administration seen as favouring a weaker currency. As gold is priced in dollars, a weaker greenback makes the metal cheaper for holders of other currencies, boosting demand.

Finally, sustained physical buying has provided a solid foundation for the price rise. Central banks, particularly in emerging markets, have been steadily increasing their gold reserves, while retail investor demand has also remained elevated.

Analyst Forecasts: How High Can It Go?

The blistering rally has left many banks scrambling to update their targets. Goldman Sachs recently lifted its December 2026 forecast to $5,400 per ounce, citing materialising upside risks. Other institutions are far more bullish. Jefferies projects a rise to $6,600, while analysts at BMO Capital Markets have outlined a scenario where gold could reach $8,650, citing a “fundamental system shift” in global financial markets. Some commentaries even suggest $7,000 is within reach if geopolitical fragmentation accelerates.

Frequently Asked Questions

Why is the gold price rising so fast?

The rapid rise is due to a “perfect storm” of factors: intense geopolitical tensions (US-Iran, US-Venezuela, NATO disputes), a significantly weaker US dollar, expectations of looser monetary policy from the Federal Reserve, and robust physical buying from both central banks and retail investors seeking a safe store of value.

What does gold breaking $5,000 mean?

Breaking the $5,000 per ounce barrier is a major psychological and technical milestone that confirms a powerful long-term bullish trend. It signals a profound loss of confidence in traditional financial assets and fiat currencies, prompting a historic reallocation into hard assets like gold.

Where is the gold price headed next?

While predictions vary, the consensus among analysts has turned decisively bullish. Major banks like Goldman Sachs target $5,400 by year-end, while more aggressive forecasts from firms like Jefferies and BMO suggest a path towards $6,600 or even higher in the coming years, dependent on the persistence of current geopolitical and economic stresses.