• Gold has surged to a record above $4,967 per ounce and is approaching the $5,000 milestone, resulting in a 70%+ rise over the past 12 months and an 8% weekly gain
• Central banks and private investors are aggressively accumulating gold as a hedge against regime-shift risks and long-term fiscal/monetary uncertainty
• Goldman Sachs raised its year-end 2026 gold price target to $5,400 per ounce, citing “stickier” macro-policy hedges from high-net-worth families and institutions

Harare- Gold is closing in on the $5,000-an-ounce milestone, driven by a powerful mix of geopolitical uncertainty, a weakening US dollar, and deepening concerns over the stability of traditional financial systems.

On the 23^rd of January 2026, bullion reached a fresh record high above $4,967 per ounce, positioning it for a weekly gain of nearly 8%.

This surge follows an extraordinary performance, with gold rising more than 70% over the past 12 months and maintaining its record-breaking momentum well into early 2026.

Silver has climbed to an all-time peak just below $100 an ounce, while platinum has also posted new highs, reflecting broad strength across precious metals.

The rally marks a significant re-rating of gold’s role in global portfolios. Investors increasingly regard bullion as a dependable shield against hard-to-quantify regime-shift risks, particularly as cracks emerge in the post-World War II rules-based international order.

Geopolitical tensions, including renewed US military rhetoric toward Venezuela, strategic concerns surrounding Greenland, and escalating friction with Iran, have intensified what is known as the debasement trade. In this environment, investors are shifting capital away from sovereign bonds and fiat currencies toward alternative stores of value such as gold, seeking protection against potential erosion of monetary credibility.

A major catalyst has been President Donald Trump’s renewed criticism of the Federal Reserve, including direct challenges to its independence and clear indications that he plans to appoint a successor more aligned with his economic priorities.

With candidate interviews reportedly concluded and a dovish figure under consideration, markets are pricing in additional interest-rate cuts beyond the three already implemented. Lower rates reduce the opportunity cost of holding non-yielding assets like gold, while a sharply weaker dollar on course for its weakest weekly performance in seven months has made bullion more accessible to buyers outside the United States, adding further upward pressure.

Central banks continue to provide strong structural support through aggressive accumulation. Poland’s National Bank of Poland, the world’s leading reported buyer in recent years, this week approved the acquisition of another 150 tonnes, aiming to push its reserves toward 700 tonnes and secure a place among the global top ten holders.

This decision reflects a broader trend among emerging-market authorities to diversify away from US Treasuries, India’s holdings have fallen to a five-year low toward gold as a hedge against geopolitical volatility and dollar dominance.

Goldman Sachs anticipates central-bank purchases will average approximately 60 tonnes per month in 2026, sustaining consistent demand.

Private-sector interest has exceeded expectations, prompting Goldman Sachs to revise its year-end 2026 price target upward to $5,400 per ounce from the previous $4,900. In a January 21 research note, strategists including Daan Struyven and Lina Thomas highlighted the “stickier” nature of positions taken by high-net-worth families and institutional investors as hedges against long-term fiscal and monetary policy risks.

Unlike event-specific hedges linked to moments such as the 2024 US election, these macro-policy hedges are expected to persist. Western exchange-traded fund holdings have grown by roughly 500 tonnes since the beginning of 2025, surpassing forecasts based solely on anticipated rate reductions, with Goldman projecting a further 50 basis points of Federal Reserve easing this year.

Ahmad Assiri, a strategist at Pepperstone Group, observes that gold supply remains insufficient to meet the scale of diversification demand driven by US market and political tensions, rendering traditional price ceilings increasingly fragile.

While upside risks dominate, further private-sector diversification amid ongoing global uncertainty could push prices even higher, a material reduction in perceived policy threats could lead to partial liquidation of these hedges on the downside.

As gold approaches the $5,000 threshold and precious metals extend their historic advance, the rally highlights a fundamental shift in investor behaviour. In an era defined by changing global power dynamics, fiscal challenges, and institutional pressures, capital continues to flow toward timeless safe havens.

For the time being, the momentum shows no signs of fading, with bullion well positioned to test higher levels if the underlying drivers remain in place.

Equity Axis News