Gold Hits Record High $4700: Can It Hit $5,000?

Gold Hits Record High $4700: Can It Hit $5,000?

Gold has recently surged to new heights, hitting a record-breaking $4700 per ounce, driven by a weaker dollar and heightened geopolitical tensions. The rise in gold prices is part of a broader trend where both gold and silver are soaring, reflecting growing demand for safe-haven assets.

Gold’s record high comes amidst concerns about global economic instability, as well as fears of renewed trade tensions, particularly surrounding the U.S.’s interests in Greenland.

As gold continues its rally, many investors are wondering: Can gold reach $5000 per ounce in the near future?

The Factors Behind Gold’s Record High of $4700

Gold’s climb to $4700 per ounce is largely driven by a series of global factors that have increased its appeal as a safe-haven asset. Amid rising inflation, ongoing geopolitical tensions, and economic uncertainty, investors are flocking to gold for its stability.

Traditionally, gold has been seen as a store of value during times of crisis, and its status as a reliable hedge against inflation is more relevant than ever. The gold price surge today, with COMEX gold hitting $4739, marks a new historical high above the $4700 mark. This surge is underpinned by multiple factors driving demand for gold as a safe-haven asset.

Geopolitical Tensions and Trade Risks

U.S. tariffs on 8 European countries and the escalating Greenland dispute between the U.S. and Denmark have significantly raised U.S.-EU trade war risks. These geopolitical tensions, combined with the ongoing Russia-Ukraine conflict, have created a perfect storm of uncertainty, leading to capital flowing into gold as a safe haven. The fear of escalating trade wars and broader geopolitical instability is propelling gold to new highs.

The Fed and Market Expectations for Policy Easing

Another key factor behind the gold price surge is the market’s expectations for a rate cut in 2026.

Federal Reserve Chairman Jerome Powell is under investigation, raising concerns about central bank independence. These concerns, along with the weakening dollar and falling real interest rates, are reducing the cost of holding gold, further boosting its appeal. The ongoing speculation about monetary policy easing by the Fed is putting pressure on the dollar and making gold more attractive as a non-interest-bearing asset.

The Dollar’s Devaluation and Central Bank Purchases

The devaluation of the dollar continues as central banks around the world are increasingly buying gold to hedge against dollar risk. Countries are optimising their reserve structures and protecting themselves from fluctuations in their own currencies by increasing gold reserves.

This long-term trend is providing consistent support for gold as central banks seek to protect their economies from the risks associated with dollar devaluation.

Technical Factors Driving Gold’s Rise

Gold’s recent breakthrough of the $4650 resistance level has triggered technical buying, further fueling its rise. Institutional investors and ETF funds are continuing to flow into gold, strengthening the upward trend.

This surge in technical buying, combined with the factors mentioned above, is pushing gold to new heights, and many analysts are now predicting that gold could exceed $5000 in the near future.

Analysts Predict Gold Could Hit $5000

Gold’s performance has already exceeded expectations, with the metal gaining more than 64% in 2025 and rising by over 8% in January 2026 alone. Given the ongoing volatility, analysts are optimistic about gold’s future price trajectory.

Citi Research remains tactically bullish on precious metals in the short term. In a recent note, strategist Kenny Hu stated that the key drivers of the bull market on geopolitical risks and concerns over the Fed’s independence are still in play.

According to Citi, the uncertainty surrounding global trade and the delay in tariff decisions will likely keep U.S. metal stockpiles from massively flowing back to the global market, further tightening physical metal supply. This market tightness is expected to support prices and extend the current rally.

Citi has set a price target of $5000 per ounce for gold over the next three months. These price targets reflect ongoing market conditions that favor precious metals. This forecast notably aligns with the gold price prediction 2026 shared by various financial institutions.

Can Gold Hit $6000?

Bank of America’s Chief Investment Strategist Hartnett also believes in the long-term bullish case for gold despite short-term overbought conditions. Hartnett noted that, despite gold and silver being overbought in the short term (with silver 104% higher than its 200-day moving average, the highest overbought level since 1980), the long-term bullish case for gold remains intact.

With gold prices expected to rise, Bank of America forecasts that gold prices could exceed $6000 in the future.

XAUUSD Technical Analysis on Gold

On a technical perspective, the XAUUSD technical analysis after gold hits record high $4700 suggests that the bullish momentum remains strong but is showing signs of short-term stretch.

XAUUSD Technical Analysis

Indicator	Latest Value	Signal
RSI (14)	65.311	Buy, near stretched
MACD (12,26)	22.46	Buy
ADX (14)	43.863	Neutral
Stoch RSI (14)	~82.8	Overbought
ATR (14)	13.4872	Volatility remains meaningful
MA50 (simple)	4657.06	Buy
MA200 (simple)	4582.17	Buy

While gold’s chart is pointed higher, the RSI and Stochastic RSI indicate the market is overbought, suggesting short-term pullbacks are possible. The MACD remains positive, which confirms bullish momentum. This is a key indicator suggesting that gold’s rally is still intact. The ADX above 25 signals a strong trend and confirms that the market is trending rather than moving sideways.

Support and Resistance Levels

Level	Price	Signal
Support (S1)	~4684	Bullish support zone
Pivot	~4690	Key short-term balance point
Resistance (R1)	~4701	Near current highs
Resistance (R3)	~4718	Extended upside barrier

Traders are watching for gold to hold above the pivot level around $4690. If gold breaks through the resistance levels near $4701 and $4718, we could see a continued rally toward $5000. However, if gold falls below $4684, there could be a brief pullback before the next rally.

Key Risks to Monitor

While gold remains in a strong uptrend, risks to this momentum include:

• A sudden rise in real yields
• A stronger dollar
• Crowded positioning leading to forced profit-taking
• A shift in safe-haven demand due to changes in geopolitical tensions

Lunar New Year: A Seasonal Boost for Precious Metals

As we approach the Lunar New Year, gold and silver could receive additional support.

Traditionally, the holiday season has seen an uptick in demand for gold, as it is often given as a gift to symbolize wealth and prosperity. This seasonal increase in demand could provide an additional boost for both gold and silver in the coming months.

The Lunar New Year has historically been a key driver of gold sales, especially in the form of jewelry, and this trend is expected to continue. As consumers look to purchase gold for the holiday, both gold and silver prices may see a further lift, adding to the already bullish outlook for these metals.

Conclusion

Gold’s recent record high of $4700 per ounce demonstrates its ongoing appeal as a safe-haven asset in times of uncertainty.

With the dollar weakening and interest rates falling, gold’s appeal as a hedge continues to grow. The breakout above $4650 and the influx of institutional funds suggest that this upward trend may persist, further solidifying gold’s position as a key asset in uncertain times.

As long as these conditions hold, gold could continue to see significant gains in the near future.

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