The price of gold has surpassed the $5,000 per ounce mark, a historic benchmark for this precious metal.
This move indicates increasing concern among investors about the ongoing decline of the US dollar, while Bitcoin and Ethereum remain well below critical levels.
Gold surpasses $5,000 amid dollar collapse
As of the writing of this text, gold is trading at $4,987 after reaching a daily high of $5,009 on January 24. The precious metal has risen by nearly 20% over the past twenty-four hours.
Meanwhile, the US Dollar Index (DXY) fell to 97.45, its lowest level in several months, having last tested this level in September 2025.
This achievement coincided with a notable on-chain movement, where a trader deposited 7 million USDT on the Bybit exchange and withdrew 843 units of XAUT worth $4.17 million, highlighting rising interest in tokenized gold as a means to hedge against fiat currency fluctuations.
Lookonchain, which monitors blockchain transactions, noted this activity, indicating that the large purchase of XAUT is one of the largest movements of crypto gold in recent months.
The deal may signal potential strategies for profit-taking or reallocation as gold reaches unprecedented levels.
While cryptocurrencies have traditionally been considered an alternative to fiat currencies, the latest price movement highlights the resilience of gold compared to digital assets.
Ethereum is trading at $2,958 and Bitcoin at $89,615, with gold's rise exceeding the gains of leading cryptocurrencies in recent weeks. This divergence reflects gold's ongoing role as a safe-haven asset during periods of macroeconomic uncertainty.
The decline of the US dollar has been a key driver of the rise. According to recent market commentary, the US dollar has lost nearly 50% of its value compared to gold over the past year. Notably, this represents the largest decline in US history.
Could the weakness of the dollar and commodity pressures drive gold prices up towards $6,500?
Analysts warn that continued dollar weakness is fueling a broader rush towards precious metals and other inflation-resistant assets.
In this context, overall sentiment towards gold remains optimistic, particularly regarding the precious metal's near-term trajectory.
"The possibility of a price movement for gold in the coming weeks and months. I expect the current rise in gold to continue to $5,400 – $5,600, followed by a 10% correction, consolidation, and a continued rise towards $6,500 by the summer of 2026, which, if achieved, would represent a 30% profit from the current price level..." said investment director and financial analyst Rashad Hajiyev.
This prediction aligns with Goldman Sachs' hypothesis that the price of gold could rise to $5,400 by 2026. Reports also indicate that Bank of America expects gold to reach $6,000 by spring 2026.
Copper shortages and a weak dollar highlight gold as a safe haven asset.
The rise in gold prices also reflects broader pressures on commodities. Billionaire Robert Friedland recently highlighted structural constraints in the copper market. He warned of an impending supply shortage critical for sustaining global GDP growth and electrification efforts.
"We consume 30 million tons of copper annually, of which only 4 million is recycled... Over the next eighteen years, we need to mine what we extracted from copper in the last ten thousand years combined," Friedland said, pointing to the scarcity pressures affecting various commodity markets, including precious metals.
The convergence of a weak dollar, supply chain pressures, and historic gold prices represents both an opportunity and a risk.
The $4.17 million XAUT deal on Bybit could foreshadow other institutional moves towards the distinguished gold.
At the same time, the older macro environment suggests that gold may remain a vital hedge for preserving wealth amid increasing volatility in cryptocurrencies and fiat currencies.
