Gold breaches 5500 dollars for first time

When markets become unstable, investors often search for a place to protect their wealth. More often than not, that place is gold.

During the first year of Donald Trump’s presidency, the price of one troy ounce of gold nearly doubled. In April, the announcement of new trade tariffs unsettled financial markets, prompting many investors to sell shares and move their money into precious metals. As the year progressed, rising geopolitical tensions and ongoing conflicts in the Middle East, Ukraine, and parts of South and Southeast Asia further boosted demand.

By the end of January, gold had climbed to USD 5,500 per ounce. A weakening U.S. dollar also contributed to the surge, since commodities priced in dollars typically rise when the currency falls.

In late January 2026, gold reached a record high above $5,500 per ounce. The rally was fueled by heightened global uncertainty, strong buying from central banks—particularly China and India—and growing concerns about U.S. debt levels and inflation. Although prices were volatile and experienced a sharp pullback in early February, gold remained significantly higher than a year earlier, supported by strong safe-haven demand.

Main Drivers (Early 2026)
Record Highs:
Gold moved past $5,000 in late January and climbed close to $5,600 by January 28, 2026.

Political and Economic Uncertainty:
Trade disputes, questions surrounding U.S. fiscal stability, and concerns about Federal Reserve independence all played a role in lifting prices.

Safe-Haven Demand:
Investors turned to gold amid fears of currency weakness and global instability.

Central Bank Purchases:
Ongoing buying from major central banks helped maintain price strength at elevated levels.
Despite a brief drop of more than 9% in early February, analysts noted that the long-term fundamentals remain intact. Prices continue to sit well above historical levels seen before 2026.

Key Historical Milestones
January 2026: Broke through the $5,000 and $5,500 psychological levels for the first time.
October 2025: Surpassed $4,000 per ounce.
April 2025: Reached $3,500, exceeding the inflation-adjusted peak from 1980.
May 2023: First moved above $2,000 per ounce.

Overall, the recent surge represents a major reset in gold’s valuation compared to prior years, reflecting a world marked by economic and geopolitical uncertainty.