Gold tops $5,000, silver soars as 'breathtaking and profoundly scary' rally continues
Ines Ferré ·
Senior Business Reporter
Updated
Mon, January 26, 2026 at 3:21 PM EST
2 min read
In this article:
Gold (GC=F) continued to rise on Monday after breaking above $5,000 an ounce earlier than Wall Street expected. Futures hit the major milestone on Sunday while silver (SI=F) also soared at one point beyond $115, raising questions about the stunning speed of the rally in precious metals.
Gold's surge has become a hallmark of the “debasement trade,” with investors buying assets to protect against the erosion of purchasing power amid soaring government debt worldwide.
Silver has moved even more aggressively, posting a near-parabolic surge and climbing 50% year-to-date.
"The rise in precious metals prices is breathtaking and profoundly scary," Robin Brooks, senior fellow at the Brookings Institution, wrote on Sunday, noting the rise in gold prices is "part of something much bigger."
"We’re at the start of a global debt crisis, with markets increasingly fearful governments will attempt to inflate away out-of-control debt," Brooks wrote.
Read more: How to invest in gold in 4 steps
Brooks noted that while the US dollar (DXY.NY-B) remained relatively stable during the second half of last year, it has begun the year on a downward trajectory. The dollar weakened against major currencies on Monday, reaching a four-month low amid speculation that the US could coordinate with Japan to support the yen.
"A falling dollar will super-charge the rise in gold prices and the debasement trade because it boosts the purchasing power of non-dollar buyers," Brooks wrote.
Goldman Sachs recently raised its year-end price target from $4,900 to $5,400, noting increased participation from private investors seeking to diversify portfolios and protect wealth.
“We see the risks to our upgraded gold price forecast as two-sided but still significantly skewed to the upside because private sector investors may diversify further on lingering global policy uncertainty,” the analysts said.
Bullion has made turns higher at every major geopolitical event this year, including the US capture of Venezuelan leader Nicolás Maduro and President Trump’s tariff threats in pursuit of Greenland.
The precious metal has rallied more than 16% year to date, following a 65% surge in 2025.
Though foreign central bank demand for gold has been strong amid trimmed exposure to US Treasurys, Brooks argued that it does not explain the massive rise in gold prices so far this year.
"The fact that this is a broad bubble across all precious metals argues against central banks being a key driver," Brooks wrote.
Elsewhere in in the metals complex, platinum (PL=F) also touched new highs, gaining over 40% so far this year.
Story Continues
Copper (HC=F) on Friday rose to a record high above $13,000 per ton in London.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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