Gold breaks $5,000/oz: what’s driving the rally

On 25 January 2026, gold moved above $5,000 per ounce for the first time, extending a powerful run after a strong 2025.

For investors, a move like this isn’t just a headline. It’s the market repricing uncertainty – and reminding everyone why physical gold still sits at the centre of “safe-haven” portfolios.

What happened (and why it matters)

When gold makes new highs, it’s rarely about one single trigger. Big moves tend to happen when multiple forces align – geopolitical risk, policy uncertainty, and macro conditions that push investors towards assets that don’t rely on corporate earnings or anyone else’s promise to pay.

Gold’s appeal is simple: it’s tangible, it’s scarce, and it isn’t tied to a bank’s balance sheet.

The key drivers behind the move

The recent rally has been linked to a mix of factors, including:

• Geopolitical tension and headline risk increasing safe-haven demand.
• Trade-policy nerves and market sensitivity to policy shifts.
• Rate-cut expectations (lower rates can reduce the “opportunity cost” of holding non-yielding assets like gold).
• Central bank buying continuing to support underlying demand.
• Currency and inflation dynamics keeping investors focused on preserving purchasing power.

Scarcity: the quiet engine in the background

One of gold’s most under-appreciated features is that supply doesn’t respond quickly to price. Mining output can’t be switched on overnight, and new projects take years. When demand rises sharply, supply typically can’t “catch up” in the short term, which can amplify price moves.

Put simply: gold is scarce by design, and that scarcity becomes more visible in stressed markets.

The takeaway

A $5,000 print is dramatic – but the bigger story is why it happened. Investors and institutions tend to pay up for certainty when uncertainty rises, and gold is one of the few assets that can sit outside the financial system entirely.

If you already own physical gold, this kind of moment can be a useful checkpoint to review:

• your time horizon and objectives,
• your mix of products (bullion vs graded coins),
• storage and documentation,
• and your exit options if you ever choose to realise gains.