Gold Soars Past $5,000 as Bitcoin Falls to $86,000

TLDR

• Gold hit a record high above $5,000 per ounce on Monday amid trade tensions and fears of a US government shutdown
• Bitcoin fell to $86,000, marking a 30% drop from its October peak of $126,000 and erasing all 2026 gains
• Gold has surged 83% over the past year while Bitcoin declined 17%, showing a widening gap between the assets
• Silver topped $107 per ounce for the first time and platinum gained over 40% in 2026 as precious metals rally
• Goldman Sachs raised its year-end gold price target from $4,900 to $5,400 citing investor demand for portfolio protection

Gold prices topped $5,000 per ounce on Monday for the first time in history. The precious metal reached $5,080 during trading as investors sought safe haven assets.

The rally comes as trade tensions increase and concerns grow about a potential US government shutdown. President Donald Trump threatened Canada with a 100% tariff over a China trade deal during the weekend.

Gold has gained 17% in January alone. Over the past year, the metal has surged 83% from its previous levels.

Bitcoin moved in the opposite direction. The cryptocurrency fell to just below $86,000 on Coinbase late Sunday, hitting a five-week low.

Bitcoin has now dropped 30% from its October peak of $126,000. The digital asset has erased all gains made so far in 2026.

The gap between gold and Bitcoin continues to widen. While gold has climbed 83% over the past year, Bitcoin declined 17% during the same period.

Investors are buying gold as a hedge against currency debasement. This trade protects against the erosion of purchasing power as government debt grows worldwide.

Other Precious Metals Join the Rally

Silver broke above $107 per ounce on Sunday after topping $100 for the first time on Friday. The metal is up 48% so far in 2026.

Platinum also reached new highs. The precious metal has gained over 40% this year.

Goldman Sachs raised its year-end gold price target. The bank increased its forecast from $4,900 to $5,400 per ounce.

The analysts cited increased participation from private investors. These buyers are seeking to diversify portfolios and protect wealth during uncertain times.

Market Dynamics Shift Away from Treasuries

Jeff Mei from BTSE exchange explained the market movements. He said the likelihood of a US government shutdown at the end of January is pushing investors toward gold.

Markets are also pricing in the Federal Reserve maintaining current interest rates. The economy has shown stronger growth and employment numbers.

Normally, capital moves to US Treasuries during uncertain times. But Trump’s tariff threats and the potential shutdown have made global investors less inclined toward Treasuries.

Gold has responded to every major geopolitical event this year. These include the US capture of Venezuelan leader Nicolás Maduro and Trump’s pursuit of Greenland through tariff threats.

The precious metal rallied 65% in 2025 before this year’s 15% gain. Goldman Sachs sees risks to its forecast as skewed to the upside because investors may diversify further on policy uncertainty.

Gold beat Ethereum to the $5,000 milestone. This closed out a Polymarket bet placed in early October on which asset would reach the level first.

Ethereum prices fell below $2,800 on Sunday. The cryptocurrency is now more than 40% down from its August all-time high of $4,946.

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