TLDR
- Gold reached an all-time high above $5,000 per ounce on Monday as investors fled to safe haven assets
- Bitcoin dropped to $86,000, losing 30% from its $126,000 October peak and wiping out 2026 gains
- The divergence shows gold up 83% year-over-year while Bitcoin fell 17% in the same period
- Silver climbed above $107 and platinum gained 40% as precious metals rally across the board
- Goldman Sachs increased its gold target to $5,400 citing portfolio diversification demand
Gold prices shattered records on Monday, breaking through $5,000 per ounce for the first time. The precious metal peaked at $5,080 as global investors rushed toward safe haven assets.
Trade tensions and government shutdown fears drove the rally. President Trump threatened Canada with 100% tariffs over a China trade deal during the weekend.
The gold surge marks a 17% gain for January alone. Over the past 12 months, prices have climbed 83% from previous levels.
Bitcoin fell in the opposite direction. The cryptocurrency hit a five-week low below $86,000 on Coinbase Sunday night.
The digital asset has dropped 30% from its October high of $126,000. Bitcoin has now erased every gain made in 2026.
The split between gold and Bitcoin keeps growing. While gold jumped 83% year-over-year, Bitcoin declined 17% during the same timeframe.
Investors are turning to gold to protect against currency debasement. The trade hedges against lost purchasing power as government debt balloons worldwide.
Silver and Platinum Hit New Records
Silver crossed $107 per ounce on Sunday after breaking $100 for the first time Friday. The metal has gained 48% so far in 2026.
Platinum also set fresh highs. The precious metal is up more than 40% this year.
Robin Brooks from the Brookings Institution called the precious metals rise “breathtaking and profoundly scary.” He believes it signals the start of a global debt crisis.
Goldman Sachs updated its gold forecast. The investment bank raised its year-end target from $4,900 to $5,400 per ounce.
Analysts pointed to private investors diversifying portfolios. These buyers want wealth protection during times of policy uncertainty.
Investors Choose Gold Over US Treasuries
Jeff Mei from BTSE exchange broke down the market shift. He said the potential US government shutdown at month’s end is pushing money into gold.
Markets expect the Federal Reserve to hold interest rates steady. Recent data shows stronger economic growth and employment figures.
During uncertain periods, investors typically buy US Treasuries and gold. But Trump’s tariff threats and the shutdown risk have made Treasuries less appealing.
Gold has rallied after each major geopolitical event this year. These include the US capture of Venezuelan leader Nicolás Maduro and Trump’s Greenland tariff threats.
The precious metal gained 65% in 2025 before this year’s 15% rally. Goldman Sachs sees upside risk to its forecast as investors may diversify more on policy uncertainty.
Gold beat Ethereum to the $5,000 level. This settled a Polymarket bet from early October on which asset would reach the milestone first.
Ethereum prices dropped under $2,800 on Sunday. The token sits more than 40% below its August all-time high of $4,946.
The US dollar has started 2026 on a downward path. A falling dollar boosts the purchasing power of non-dollar buyers, which could drive gold prices even higher.
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