The gold price has risen above $5,000 per ounce, setting a historic record for the precious metal.
This increase shows that investors are increasingly concerned about the ongoing decline of the US dollar, while Bitcoin and Ethereum remain far below key levels.
Gold rises above $5,000 amid dollar decline
Currently, gold is trading at $4,987 after reaching an intra-day high of $5,009 on January 24. The precious metal has risen nearly 20% in the past 24 hours.
Meanwhile, the US Dollar Index (DXY) has dropped to 97.45, a multi-month low last tested in September 2025.
This milestone coincides with a notable on-chain transaction, where a single trader deposited 7 million USDT and withdrew 843 XAUT on the Bybit exchange, worth $4.17 million. This shows that interest in tokenized gold as protection against fiat volatility is growing.
Lookonchain, a party that analyzes blockchain transactions, signaled this activity. They explain that this large XAUT purchase is one of the largest tokenized gold movements in recent months.
The transaction may indicate that profits are being taken, or that there is a redistribution as gold stands at unprecedented levels.
Although cryptocurrencies are typically seen as an alternative to fiat, this price development shows that gold remains stronger compared to digital assets.
Ethereum is trading at $2,958 and Bitcoin at $89,615, with the gold rally surpassing the gains of the largest cryptos in recent weeks. This divergence indicates that gold remains a safe haven during periods of macroeconomic uncertainty.
The decline of the US dollar is the primary reason for this increase. According to recent market analyses, the dollar has dropped nearly 50% in value against gold over the past year. This is the largest decline in US history.
Can dollar weakness and commodity pressure drive the gold rally towards $6,500?
Analysts warn that ongoing dollar weakness is leading to more demand for precious metals and other assets that protect against inflation.
Against this background, the sentiment around gold remains predominantly bullish, especially for the short-term price.
“Possible price development of gold in the coming weeks and months. I expect this increase to continue to $5,400 – $5,600, followed by a 10% correction, which means consolidation and then a rise towards $6,500 in the summer of 2026. If this happens, it would represent a 30% increase from the current price level…,” said investment manager and financial analyst Rashad Hajiyev.
This forecast aligns with Goldman Sachs' expectation that the gold price could reach $5,400 in 2026. Bank of America also reports that they expect gold to reach $6,000 in the spring of 2026.
Copper shortages and a weak dollar put gold in the spotlight as a safe-haven asset.
The rising gold price is also related to broader pressure on commodity markets. Billionaire and mining entrepreneur Robert Friedland recently pointed to structural shortages in the copper market. He warned that shortages could soon arise that are necessary for global economic growth and electrification.
“We consume 30 million tons of copper annually, of which only 4 million tons are recycled… In the next 18 years, we need to mine as much copper as we have done in the last 10,000 years,” said Friedland, highlighting the scarcity affecting multiple commodity markets, including precious metals.
The combination of a weak dollar, supply chain issues, and a massive gold rally presents both opportunities and risks.
The $4.17 million XAUT transaction on Bybit may be a harbinger of more institutional purchases in tokenized gold.
The broader macroeconomic situation suggests that gold remains important as a protection of wealth, while volatility in cryptocurrencies and fiat currencies increases.
