Gold rebounds strongly, reclaiming the $5,000 per ounce level

Gold has staged a notable rally, climbing back above the key threshold of $5,000 per ounce after a period of significant volatility. By Wednesday morning, spot gold had risen approximately 2.5% to reach $5,070, while silver also advanced, gaining 3.7% to $88.2 per ounce.

Recovery from Recent Decline

The rebound follows a sharp downturn earlier in the week that saw gold briefly fall below $4,500. That decline was largely attributed to market reactions following US President Donald Trump's announcement nominating former Federal Reserve Governor Kevin Warsh as the next central bank chair, a move that initially influenced monetary policy expectations.

Geopolitical and Monetary Drivers

Analysts point to ongoing geopolitical tensions and concerns over US dollar weakness as factors supporting the precious metal's recovery. Gold experienced its strongest monthly performance in over two decades this January, surging 13.2% amid heightened global uncertainty. The metal's role as a traditional safe-haven asset has been reinforced by international frictions and investor skepticism about future currency valuations.

Annual Performance and Market Context

Starting the year at $4,313 an ounce, gold reached an all-time high of $5,598 last week, illustrating the metal's volatile yet upward trajectory in 2026. The recent price action underscores the complex interplay between central bank policy signals, geopolitical risk, and currency markets in determining the value of the non-yielding asset.