Spot gold prices in the global market crossed $5,000-mark for the first time, trumping doubts regarding the sustainability of the yellow-metal’s rally.
The precious metal opened at $5,039. After briefly hovering around the day’s low at $5,029.6 , it hit an intraday high of $5,111 before closing at $5,093. In Indian currency, gold hit ₹1.59 lakh before settling at about ₹1.55 lakh per ten grams on the Multi Commodity Exchange.
The rally in gold, which has increased more than 65% in 2025 alone, was on the back of safe haven demand which increases during uncertainties from geo-political tensions. While analysts at the beginning of the year expected that gold could pare gains as this rally was unsustainable, yesterday’s rally has demonstrated otherwise.
“Gold’s surge to record highs on the MCX reflects a powerful convergence of global risk factors and macroeconomic tailwinds. Heightened geopolitical tensions and persistent geoeconomic uncertainty have reignited safe-haven demand, while a softer U.S. dollar has improved bullion’s attractiveness for global investors. Markets are increasingly pricing in the likelihood of future U.S. Federal Reserve rate cuts, which has further reduced the opportunity cost of holding non-yielding assets such as gold. This combination of risk aversion, currency weakness, and shifting monetary policy expectations has driven sustained inflows into precious metals, positioning gold as a preferred hedge against volatility. The current breakout suggests that investors are structurally reallocating toward defensive assets rather than merely reacting to short-term headlines,” said Rahul Gupta, Chief Business Officer, Ashika Group said.
Published – January 26, 2026 09:54 pm IST
Source: https://www.thehindu.com/business/gold-crosses-5000-dollar-on-heightened-geo-political-pressure/article70553930.ece
