Introduction to the Gold Rush
Gold just had its best week since the pandemic panic of March 2020, and the rally might only be getting started. The yellow metal blasted through $4,950 per ounce, hitting an intraday record of $4,966.93 and extending a surge that has seen prices climb more than 11% in January alone. For context, gold gained 64% in all of 2025—the best annual performance since 1979.
What’s Driving the Surge
Three forces are converging to push gold into uncharted territory.
- The dollar is bleeding out: The U.S. Dollar Index has dropped 8.8% since the end of 2024, making gold cheaper for international buyers and undermining confidence in the world’s reserve currency.
- Central banks can’t stop buying: Emerging market central banks have purchased a net 297 tonnes of gold through November 2025, according to the World Gold Council.
- The Fed pivot trade is alive: Markets are pricing in two cuts in the second half of 2026. The Fed’s decision came in line with expectations, reinforcing the view that disinflation is progressing without forcing the Fed into emergency action.
Silver Is Running Even Hotter
If gold is surging, silver is absolutely screaming. The white metal jumped nearly 3% toward $99 per ounce, setting fresh all-time highs and closing in on the psychological $100 barrier. Silver has gained more than 180% over the past year—nearly triple gold’s returns.
How to Play the Precious Metals Rally
For investors looking to capitalize on the move, several options exist across the risk spectrum.
- SPDR Gold Shares (GLD) offers the most liquid direct exposure to gold prices.
- iShares Silver Trust (SLV) provides similar exposure to silver.
- VanEck Gold Miners ETF (GDX) tracks major gold producers like Newmont, Barrick, and Agnico Eagle.
- VanEck Junior Gold Miners ETF (GDXJ) focuses on smaller exploration and development companies.
The Risks Worth Watching
No rally lasts forever, and gold bulls should keep several risks on their radar.
- Stronger-than-expected economic growth could delay Fed rate cuts and strengthen the dollar, creating headwinds for precious metals.
- A resolution to geopolitical tensions could reduce safe-haven demand.
- Technical exhaustion is a real concern after such a parabolic move.
- Institutional rebalancing creates periodic selling pressure.
What to Watch Next
Three catalysts will determine whether gold continues marching toward Goldman’s $5,400 target.
- The Federal Reserve’s January 28-29 meeting.
- Trump’s Fed chair nomination.
- Central bank buying data.
Conclusion
Gold at $5,000 no longer sounds crazy. The question now is what happens after it gets there. With the current momentum and the factors driving the surge, it’s likely that gold will continue to rise. However, investors should be aware of the risks and keep a close eye on the market. As the gold rush continues, it’s essential to stay informed and make informed decisions to maximize returns.
