Precious metals continue their historic run as gold officially shattered the $4,900 per ounce barrier while silver reached an all-time high above $117, marking one of the most extraordinary rallies in commodities history.
Gold Breaks Through $4,900
Gold prices smashed through the $4,900 per ounce mark during early morning trading on Monday, January 26, 2026, extending gains that have already seen the metal rise over 65% from its 2024 levels. The spot price has been hitting successive record highs throughout January, with earlier peaks at $4,641 and $4,634 before the latest surge.
Goldman Sachs has set a $5,400 price target for gold, predicated on the assumption that central bank buying will remain at or above 1,000 metric tons per year and that the Federal Reserve will continue its easing cycle through at least the third quarter of 2026.
HSBC attributed the rally to a combination of safe-haven demand, a weaker U.S. dollar, and policy uncertainty, noting that "mounting fiscal deficits in the U.S. and other nations are encouraging gold demand and may be a key factor going forward."
Silver Hits Triple-Digit Territory
Silver has been even more explosive, reaching an all-time high of $117.72 per ounce in January 2026. The precious metal has surged more than 55% year-to-date after recording a stunning 146% gain in 2025—its sharpest annual jump since 1979.
As of the latest trading session, spot silver jumped 6.9% to $111.11 an ounce after hitting the $117.69 record high on Monday. The metal's dual role as both a monetary hedge and an industrial commodity continues to attract investor interest as prices push deeper into uncharted triple-digit territory.
Key Drivers Behind the Rally
Several factors are fueling the precious metals surge:
Safe-Haven Demand: Geopolitical tensions remain elevated following fresh threats between major powers. The European Union's decision to label Iran's Islamic Revolutionary Guard Corps as a terrorist organization has added to global uncertainty.
Federal Reserve Policy: According to CME FedWatch, the Federal Reserve is expected to cut rates twice in 2026, reducing the opportunity cost of holding gold. As a non-yielding asset, gold becomes more attractive when interest rates decline.
Emerging Market Demand: Silver is gaining popularity among lower-to-middle income buyers in emerging markets who have been priced out of physical gold due to rising prices. In Shanghai, buyers are reportedly paying a premium of around $10 per ounce on top of London prices.
Supply Constraints: A mix of constrained supply and rising industrial demand, particularly from clean energy and technology sectors, has created a structural deficit in the silver market.
What Analysts Are Predicting
Major financial institutions have raised their price forecasts significantly:
- J.P. Morgan expects gold prices to average $5,055 per ounce by the fourth quarter of 2026
- Bank of America raised its gold price forecast to $5,000 per ounce for 2026
- Goldman Sachs sees potential for gold to reach $5,400 amid continued central bank buying
The consensus among analysts is that the precious metals bull market has further room to run, driven by persistent inflation concerns, geopolitical uncertainty, and central bank diversification away from dollar-denominated assets.
Sources: CNBC, Goldman Sachs Research, J.P. Morgan Global Research, Bank of America, Fortune, Nasdaq