Gold Breaks $5,000 in Historic Rally
Gold continued to climb after breaking above $5,000 an ounce for the first time, a milestone that caught much of Wall Street off guard due to the speed and scale of the move.
Futures crossed the threshold Sunday, underscoring just how aggressively investors have been rotating into precious metals as macro risks intensify.
The Debasement Trade Takes Center Stage
The surge in gold has become the clearest signal yet of the so-called “debasement trade” — a move into hard assets designed to protect purchasing power as global debt levels balloon.
Robin Brooks, senior fellow at the Brookings Institution, described the rally as:
“Breathtaking and profoundly scary,”
adding that it is “part of something much bigger.”
According to Brooks, markets are increasingly worried that governments will attempt to inflate away unsustainable debt burdens, pushing investors out of paper assets and into real stores of value.
Dollar Weakness Adds Fuel
While the U.S. dollar remained relatively stable in the second half of last year, it has started 2026 on the back foot, weakening against major currencies and hitting a four-month low.
A softer dollar has two key effects for gold:
- It boosts purchasing power for non-U.S. buyers
- It amplifies demand for assets priced outside fiat systems
As Brooks noted, a falling dollar has the potential to super-charge the debasement trade.
Wall Street Turns More Bullish
Major banks are now playing catch-up.
Goldman Sachs recently raised its year-end gold forecast from $4,900 to $5,400, citing growing participation from private investors seeking diversification amid policy uncertainty.
The firm said risks remain skewed to the upside, particularly if confidence in fiat systems continues to erode.
Geopolitics Keep Adding Pressure
Gold has moved higher at nearly every major geopolitical flashpoint this year, including:
- The U.S. seizure of Venezuela’s leader
- Escalating tariff threats tied to Greenland
- Renewed pressure on central bank independence
Gold is now up 15% year-to-date, following a massive 65% surge in 2025.
This Isn’t Just a Gold Story
The rally is broad across the metals complex, weakening the argument that central banks alone are driving prices.
- Silver has surged past $100 per ounce
- Platinum is up more than 40% this year
- Copper has climbed above $13,000 per ton
As Brooks pointed out, a synchronized move across all precious metals suggests structural demand, not just isolated buying.
WSA Take
Gold breaking $5,000 isn’t about hype — it’s about trust erosion.
Rising debt, weaker currencies, and geopolitical strain are pushing investors toward assets that don’t rely on policy credibility. The fact that silver, platinum, and copper are surging alongside gold signals something deeper: a global repricing of risk.
This isn’t a speculative spike.
It’s a macro warning shot.
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