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Gold price today crosses $5,000, Silver rate nears $110: What the record rally means for your portfo
Summary
Gold prices and silver rates continued their blistering rally in global markets on Monday, January 26, pushing both precious metals to fresh record highs as investors rushed for safety amid escalating geopolitical and policy uncertainties.
Gold prices surged above the $5,000-per-ounce mark, extending a historic run that has been fuelled by rising global tensions, fragile macro conditions and a growing loss of confidence in fiat currencies.
Meanwhile, Silver, often the more volatile cousin of gold, moved in tandem with Spot silver jumping over 5% to touch a new all-time high of $108.60.
The rally in precious metals has been underpinned by a combination of geopolitical shocks and policy uncertainty.
Ongoing conflicts in Ukraine and Gaza, along with fresh actions by the US against Venezuelan President Nicolás Maduro, have heightened global risk aversion. At the same time, US President Donald Trump’s trade stance has rattled markets, particularly after he threatened to impose a 100% tariff on Canada if it were to strike a trade deal with China.
Beyond geopolitics, broader macro forces are also at play.
Elevated inflation, a weakening US dollar, sustained buying by central banks and expectations of interest rate cuts by the US Federal Reserve later this year have all strengthened the case for holding precious metals. In such an environment, gold and silver have increasingly emerged as preferred shelters when traditional assets struggle to provide stability.
According to Anand Rathi, the surge in precious metals reflects a deeper structural shift in the global economic order. The brokerage noted that economic outcomes are now driven less by efficiency and more by power politics, with trade sanctions, technology restrictions and energy security concerns replacing free-flowing global capital.
“Gold has moved from being a cyclical inflation hedge to becoming a form of geopolitical insurance in an uncertain world,” Anand Rathi said, highlighting how persistent deficits and aggressive balance-sheet expansion by central banks have eroded trust in fiat currencies.
In this regime, traditional portfolio assumptions are being challenged. Cash and bonds tend to lose purchasing power when real interest rates remain negative for extended periods, while currency stability can no longer be taken for granted. Anand Rathi pointed out that gold’s role today is not to maximise returns, but to act as balance-sheet protection during periods of stress.
Central banks have reinforced this trend. Official sector gold purchases have remained structurally positive since 2010, accelerating meaningfully after 2018 and again after 2022. The brokerage said reserve managers are increasingly diversifying away from the US dollar and the euro due to rising concerns around currency concentration and reserve weaponisation.
“Gold carries no counterparty risk and remains outside the control of any single sovereign or payment system,” Anand Rathi said, explaining why official allocations have continued to rise even at elevated price levels.
Long-term data also shows that gold typically exhibits low or negative correlation with equities during market corrections. While equities deliver superior long-term returns, gold has historically helped stabilise portfolios when volatility spikes. As a result, Anand Rathi stressed that gold works best as a strategic allocation rather than a trading asset.
While gold plays defence, silver plays offence. Anand Rathi described silver as a hybrid asset — part monetary metal and part industrial commodity — with much higher volatility and a stronger linkage to economic cycles.
Nearly 60% of global silver production comes as a by-product of mining base metals such as copper, zinc and lead. This makes silver supply relatively inelastic and heavily dependent on base-metal investment cycles, amplifying price swings during reflationary phases.
The brokerage said the recent surge in silver was driven by reflation expectations, falling real rates and a catch-up rally after years of underperformance versus gold. However, it cautioned that this relative catch-up phase is largely behind.
“Silver’s next leg depends not on valuation, but on sustained growth and industrial demand,” Anand Rathi said, pointing to themes such as solar power, electric vehicles and electrification as key drivers.
Historically, silver has tended to outperform in risk-on environments and underperform during market stress. Its higher volatility and positive equity correlation make it unsuitable as a defensive hedge, but attractive as a tactical, satellite allocation.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Gold prices surged above the $5,000-per-ounce mark, extending a historic run that has been fuelled by rising global tensions, fragile macro conditions and a growing loss of confidence in fiat currencies.
Meanwhile, Silver, often the more volatile cousin of gold, moved in tandem with Spot silver jumping over 5% to touch a new all-time high of $108.60.
The rally in precious metals has been underpinned by a combination of geopolitical shocks and policy uncertainty.
Ongoing conflicts in Ukraine and Gaza, along with fresh actions by the US against Venezuelan President Nicolás Maduro, have heightened global risk aversion. At the same time, US President Donald Trump’s trade stance has rattled markets, particularly after he threatened to impose a 100% tariff on Canada if it were to strike a trade deal with China.
Beyond geopolitics, broader macro forces are also at play.
Elevated inflation, a weakening US dollar, sustained buying by central banks and expectations of interest rate cuts by the US Federal Reserve later this year have all strengthened the case for holding precious metals. In such an environment, gold and silver have increasingly emerged as preferred shelters when traditional assets struggle to provide stability.
According to Anand Rathi, the surge in precious metals reflects a deeper structural shift in the global economic order. The brokerage noted that economic outcomes are now driven less by efficiency and more by power politics, with trade sanctions, technology restrictions and energy security concerns replacing free-flowing global capital.
“Gold has moved from being a cyclical inflation hedge to becoming a form of geopolitical insurance in an uncertain world,” Anand Rathi said, highlighting how persistent deficits and aggressive balance-sheet expansion by central banks have eroded trust in fiat currencies.
In this regime, traditional portfolio assumptions are being challenged. Cash and bonds tend to lose purchasing power when real interest rates remain negative for extended periods, while currency stability can no longer be taken for granted. Anand Rathi pointed out that gold’s role today is not to maximise returns, but to act as balance-sheet protection during periods of stress.
Central banks have reinforced this trend. Official sector gold purchases have remained structurally positive since 2010, accelerating meaningfully after 2018 and again after 2022. The brokerage said reserve managers are increasingly diversifying away from the US dollar and the euro due to rising concerns around currency concentration and reserve weaponisation.
“Gold carries no counterparty risk and remains outside the control of any single sovereign or payment system,” Anand Rathi said, explaining why official allocations have continued to rise even at elevated price levels.
Long-term data also shows that gold typically exhibits low or negative correlation with equities during market corrections. While equities deliver superior long-term returns, gold has historically helped stabilise portfolios when volatility spikes. As a result, Anand Rathi stressed that gold works best as a strategic allocation rather than a trading asset.
While gold plays defence, silver plays offence. Anand Rathi described silver as a hybrid asset — part monetary metal and part industrial commodity — with much higher volatility and a stronger linkage to economic cycles.
Nearly 60% of global silver production comes as a by-product of mining base metals such as copper, zinc and lead. This makes silver supply relatively inelastic and heavily dependent on base-metal investment cycles, amplifying price swings during reflationary phases.
The brokerage said the recent surge in silver was driven by reflation expectations, falling real rates and a catch-up rally after years of underperformance versus gold. However, it cautioned that this relative catch-up phase is largely behind.
“Silver’s next leg depends not on valuation, but on sustained growth and industrial demand,” Anand Rathi said, pointing to themes such as solar power, electric vehicles and electrification as key drivers.
Historically, silver has tended to outperform in risk-on environments and underperform during market stress. Its higher volatility and positive equity correlation make it unsuitable as a defensive hedge, but attractive as a tactical, satellite allocation.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Download the Mint app and read premium stories
Log in to our website to save your bookmarks. It'll just take a moment.
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
AI Description
The article discusses the record highs in gold and silver prices, driven by geopolitical risks and economic instability. It highlights the impact of global tensions and macroeconomic factors on precious metals, which are often considered safe-haven assets.