Gold Crosses Historic Rs 1.6 Lakh Mark as Prices Smash $5,000 Barrier

Gold prices have achieved an unprecedented milestone, soaring past $5,000 per ounce for the first time in history and crossing Rs 1.58 lakh per 10 grams in Indian markets on January 26, 2026. Spot gold reached a peak of $5,092.71 per ounce, with live trading hovering between $5,086 and $5,097. Silver has mirrored the rally, climbing above $108 per ounce after strong gains throughout 2025. This explosive surge has elevated precious metals to compete with major tech stocks in market capitalization as investors seek refuge amid mounting global risks.

The primary drivers include escalating geopolitical tensions, such as ongoing conflicts in Ukraine and Gaza, US actions against Venezuela, and fresh friction within NATO over Greenland. US President Donald Trump’s aggressive trade stance—particularly his threat of 100% tariffs on Canada over any potential China deal—has intensified market fears, pushing capital toward safe-haven assets like gold and silver. A weakening US dollar, persistent inflation concerns, aggressive central bank purchases, and anticipated Federal Reserve rate cuts this year have further amplified the bullish momentum.

Prominent economists and analysts have sounded alarms over the implications. Peter Schiff highlighted the record-breaking moves, warning of an impending economic crisis that many remain unprepared for. Robin Brooks of the Brookings Institution described the rally as “breathtaking and profoundly scary,” linking it to the early stages of a global debt crisis where governments may resort to inflation to manage unsustainable debt levels. A falling dollar is expected to accelerate gold’s appeal, especially for non-dollar buyers.

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Market forecasts remain strongly optimistic. Goldman Sachs has lifted its end-2026 target to $5,400 per ounce, citing continued private-sector and emerging-market demand amid policy uncertainty. Bank of America predicts $6,000 by spring 2026 as a realistic near-term possibility, while JP Morgan envisions similar levels longer-term driven by institutional and central bank buying.

Risks to these projections lean significantly upward given sustained investor diversification away from traditional assets. This historic breakthrough underscores gold’s enduring role as a hedge in turbulent times, with analysts widely anticipating further upside in the coming months.

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