Gold price hits new high. Could it pass $5,000?

Gold bars are displayed in a photo illustration, reflecting recent movements in gold prices

(Image credit: Jonathan Raa/NurPhoto via Getty Images)

The price of gold hit a new all-time high on 19 January, continuing the momentum from 2025 which was a standout year for precious metals.

Gold rose to its highest ever price of $4,690 per troy ounce on the morning of 19 January, having opened 1.2% higher than the previous week’s close.

“Gold has hit fresh record highs on its glittering run upwards,” said Susannah Streeter, chief investment strategist at Wealth Club. “The precious metal is holding even more allure as a safe haven as worries spread about the repercussions of the US aggressive trade and geopolitical policies.”

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The surge followed provocative statements from Donald Trump over the weekend, when the US president declared he would impose fresh tariffs on eight European countries – including the UK – that had signaled opposition to his plans to unilaterally acquire Greenland.

The gold investing surge made the yellow metal one of 2025’s best-performing assets. The price of gold rose 64.5% over the course of the year, as tariffs and the prospect of the AI bubble bursting caused jitters in the stock market and sent investors searching for safe haven assets.

“There’s no denying that 2025 has been a record year for gold,” said Rick Kanda, managing director at The Gold Bullion Company. “It’s been the best year since the 1970s, with minor dips, but still reaching colossal new highs and breaking records that none of us expected.”

Could gold pass $5,000 in 2026?

Analysts believe another major milestone could be in sight for gold prices this year.

Michael Hsueh, research analyst at Deutsche Bank, thinks gold prices could approach $5,000 during 2026.

Hsueh anticipates gold prices to end the year around $4,450, up from their previous target of $4,000, but that the price range through the year will be between $3,950-$4,950.

That suggests gold could come close to breaking through the $5,000 threshold at some point during the year. The latest gold price surge puts this threshold firmly within sight.

Deutsche Bank analysts have set a 2027 gold price forecast of $5,150.

The outlook for gold prices

Besides geopolitical turmoil, gold is expected to continue to benefit from several tailwinds in the near future, including continued demand from central banks and exchange-traded funds (ETFs), as well as the further erosion of the purchasing power of the dollar.

“There has been very strong performance from gold and other precious metals so far this year,” said Paul Syms, EMEA ETF head of fixed income and commodities product management at Invesco.

That performance has largely been driven by central bank purchasing, which has driven demand even as gold supply has been limited.

“I don’t see that demand from central banks necessarily going away anytime soon,” said Syms.

How to gain exposure to gold prices

According to Syms, gold has an important role to play in investor portfolios beyond mere price speculation.

“It's been a diversifier,” said Syms. “Overall, gold has tended to have low correlations with both equities and bonds. And it can also act as the inflation hedge.”

If you are considering where to invest for 2026 and want to add some gold exposure, there are three main approaches.

The first one is investing in the metal itself through a financial contract, such as an ETF or exchange-traded commodity (ETC).

Investments into these kinds of products are another factor helping to support gold prices this year.

“European investors are getting involved, having added over $6.5 billion to gold ETCs this year alone, reversing the outflows of 2024,” says Tom Bailey, head of research at HANetf.

See our article on the best gold ETFs for more information.

You can also get indirect exposure by investing in the miners that dig gold out of the ground. This can be done by investing directly in their shares, or by buying a gold fund or investment trust.

While gold miners don’t always rise with the gold price, as other company-specific factors are at play, they have “stolen the show so far” this year, says Bailey.

“Whereas physical gold outperformed miners by a wide margin in 2024, this year gold miners have produced a return almost three times higher,” Bailey adds.

Lastly, you can buy physical gold bars or gold coins.

In terms of how much gold to hold in a portfolio, Tom Stevenson, investment director at Fidelity International, suggests around 5-10% is a good amount – which is about the same as you might hold in cash.

“The two offer insurance and dry powder to complement the growth and stability of the shares and bonds that make up the bulk of a balanced portfolio,” he comments.

Dan is a financial journalist who, prior to joining MoneyWeek, spent five years writing for OPTO, an investment magazine focused on growth and technology stocks, ETFs and thematic investing.

Before becoming a writer, Dan spent six years working in talent acquisition in the tech sector, including for credit scoring start-up ClearScore where he first developed an interest in personal finance.

Dan studied Social Anthropology and Management at Sidney Sussex College and the Judge Business School, Cambridge University. Outside finance, he also enjoys travel writing, and has edited two published travel books.