Gold Hits New Record of $5,300 as Silver Surges Past $100
Gold extends its historic rally, driving the world toward precious metals.
Gold climbed to a fresh all-time high on the morning Wednesday, January 28, crossing $5,300 an ounce and extending a historic rally as investors continued to seek the safety of precious metals amid rising geopolitical tensions and mounting global fiscal risks.
Since the beginning of the year, the precious metal has risen by more than 20%, placing gold at the center of global risk positioning as investors weigh a softer dollar, shifting expectations for U.S. interest rates, and broader unease around the policy backdrop.
Heightened tensions involving Greenland, Venezuela, and the Middle East have reinforced gold’s role as a hedge against uncertainty, while concerns around global trade policy have further unsettled markets.
“The recent further leg up in gold and silver prices has arrived on the back of geoeconomics issues related to Greenland,” HSBC wrote in a note last week.
Silver also rallied sharply alongside gold. Spot silver prices climbed to $114 an ounce Wednesday morning, supported by both safe-haven demand and rising industrial use. On Friday, silver topped $100 an ounce for the first time ever, putting the metal up more than 260% compared with this time last year.
Analysts at Union Bancaire Privée said prices have climbed on the back of sustained demand from both institutional and retail buyers. “We anticipate that gold should enjoy another strong year, reflecting ongoing central bank and retail investment demand, with a year-end target price of USD 5,200 per ounce,” UBP said.
Goldman Sachs has highlighted a broadening of gold’s demand base beyond traditional channels. Western exchange-traded fund holdings have climbed by about 500 tonnes since the start of 2025, while newer instruments used to hedge macro-policy risks, including physical purchases by high-net-worth families, have become an increasingly important source of demand.
The investment bank recently raised its December 2026 gold price forecast to $5,400 an ounce, up from $4,900 previously. Goldman argued that hedges against global macro and policy risks have become “sticky,” effectively lifting the starting point for gold prices this year.
Central bank purchases remain a critical driver. Goldman estimates that central banks are now buying around 60 tonnes of gold per month, far above the pre-2022 average of 17 tonnes. Emerging-market central banks in particular continue to shift reserves into gold as part of long-term diversification strategies.
Crucially, Goldman assumes these hedges will remain in place through 2026. “We assume that hedges of global macro policy risks remain stable as these perceived risks (e.g. fiscal sustainability) may not fully resolve in 2026,” the bank said last week.
Gold’s appeal is also tied to its scarcity. According to the World Gold Council, only about 216,265 tonnes of gold have ever been mined. That volume would fill between three and four Olympic-sized swimming pools. The U.S. Geological Survey estimates another 64,000 tonnes remain underground, though supply growth is expected to plateau.
“When you own gold, it’s not attached to the debt of somebody else like a bond is or an equity where the performance of a company will drive performance,” said Nicholas Frappell, global head of institutional markets at ABC Refinery. “It’s a really good diversifier in a very uncertain world.”
Gold posted its biggest annual gain since 1979 last year, and analysts say the forces driving demand remain firmly in place.
Reagan Gold Group: Join the Rest of the World in Moving to Gold
At Reagan Gold Group, we focus on physical gold and silver ownership as a way to help clients diversify beyond traditional financial systems. Precious metals are tangible assets that exist outside banking balance sheets and have historically played a role during periods of geopolitical tension, fiscal uncertainty, and shifting monetary policy.
