The Gold price has surged past the $ 5,000-per-ounce mark, setting a historic benchmark for the precious metal.
This move suggests mounting investor concern over the US Dollar’s ongoing decline, while Bitcoin and Ethereum remain well below critical levels
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Gold Rockets Past $5,000 Amid Dollar Collapse
As of this writing, Gold is trading for $4,987 after establishing an intra-day high of $5,009 on January 24. The precious metal is up by almost 20% in the last 24 hours.
Meanwhile, the US Dollar Index (DXY) has nosedived to 97.45, a multi-month low as this level was last tested in September 2025.
The milestone coincides with a striking on-chain move, where a single trader on the Bybit exchange deposited 7 million USDT and withdrew 843 XAUT, worth $4.17 million, highlighting growing interest in tokenized gold as a hedge against fiat volatility.
Lookonchain, which monitors blockchain transactions, flagged the activity, noting that the sizable XAUT purchase is among the largest tokenized gold movements in recent months.
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The trade may indicate potential profit-taking or reallocation strategies as gold reaches unprecedented levels.
While cryptocurrencies have traditionally been considered an alternative to fiat, the latest price action highlights gold’s resilience relative to digital assets.
Ethereum trades at $2,958 and Bitcoin at $89,615, with gold’s rally outpacing the gains of leading cryptos in recent weeks. Such divergence reflects gold’s continuing role as a safe-haven asset during periods of macroeconomic uncertainty.
The US Dollar’s decline has been a central driver of the surge. According to recent market commentary, the greenback has lost nearly 50% of its value relative to gold over the past year. Notably, this is the largest drop in US history.
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Could Dollar Weakness and Commodity Pressures Drive Gold Rally Toward $6,500?
Analysts warn that sustained dollar weakness is fueling a broader rush into precious metals and other inflation-resistant assets.
Against this backdrop, general sentiment for gold remains bullish, particularly for the precious metal’s near-term trajectory.
“Possible price action in gold over the coming weeks and months. I expect the present run in gold to continue until $5,400 – 5,600, then 10% correction, consolidation, and continuation higher towards $6,500 by summer 2026, which, if it materializes, would constitute 30% gain from the present price level…,” stated investment manager and financial analyst Rashad Hajiyev.
This forecast aligns with Goldman Sachs’ thesis that the gold price could rally to $5,400 in 2026. Reports also indicate that Bank of America expects gold to reach $6,000 by Spring 2026.
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Copper Shortages and Dollar Weakness Spotlight Gold as a Safe-Haven Asset
The surge in gold prices also reflects broader commodity pressures. Billionaire mining magnate Robert Friedland recently highlighted structural constraints in the copper market. He warned of looming supply shortages necessary to sustain global GDP growth and electrification efforts.
“We’re consuming 30 million tonnes of copper a year, only 4 million of which is recycled… In the next 18 years, we have to mine as much copper as we mined in the last 10,000 years combined,” Friedland said, highlighting the scarcity pressures that are impacting multiple commodity markets, including precious metals.
The convergence of dollar weakness, supply-chain stress, and a historic gold rally presents both opportunity and risk.
The $4.17 million XAUT transaction on Bybit may foreshadow further institutional moves into tokenized gold.
Meanwhile, the broader macro environment suggests that gold could remain a critical hedge for wealth preservation amid increased volatility in cryptocurrencies and fiat currencies.
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Author: Lockridge Okoth
