On January 26, as we step into 2026, global capital markets are witnessing an epic revaluation of gold, with the spot price forcefully breaking through the $5,000 barrier on Monday and reaching a new high of $5,092.70, signaling the entry of safe-haven assets into a completely new era of pricing. EasyMarkets observes that after recording a staggering 64% surge in 2025, gold has climbed over 17% again within just the first few weeks of this year. This momentum reflects that, amidst the current intertwining macroeconomic risks, market reliance on traditional safe-haven assets has reached a historical peak, with uncertainty now acting as the strongest propellant for gold's ascent.
When analyzing the core factors supporting gold's sustained strength, EasyMarkets indicated that geopolitical maneuvering and uncertainties surrounding fiscal policy are key catalysts. From recent trade tariff frictions to market anxieties about the compromised independence of the Federal Reserve, these factors are driving capital towards hard assets. Concurrently, the wave of gold purchases by central banks remains robust, with Goldman Sachs forecasting that emerging market central banks will buy an average of 60 metric tons per month. Using Poland as an example, which plans to increase its gold reserves from the current 550 tons to 700 tons. EasyMarkets believes this global trend of de-dollarization is constructing an exceptionally high and stable price floor for gold.
Regarding investment channels, gold-backed ETFs recorded a record net inflow of $89 billion in 2025, equivalent to approximately 801 tons of physical gold, marking the highest level since 2020. As markets anticipate the Federal Reserve will continue to lower interest rates, the opportunity cost of holding gold is further reduced, which is expected to attract more retail and institutional capital. Although high prices have somewhat dampened jewelry consumption, demand for gold bars and coins remains strong in key markets like India, as investors increasingly value gold's asset preservation function within a complex geopolitical environment.
Concerning the outlook, EasyMarkets stated that although some LBMA analysts have set their 2026 price target as high as $7,150, investors should still remain vigilant for potential short-term pullbacks triggered by equity market volatility and changes in the interest rate path. However, gold's current performance resembles more of a long-term, institutional revaluation rather than pure speculation. EasyMarkets believes that unless the global economic and political environment returns to a state of extreme stability, any price retracement should be viewed as a strategic buying opportunity. The momentum for gold to advance towards the $6,000 range remains substantial, and traders are advised to closely monitor the strength of support around the $5,088 level.
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