Gold hits $5,300! How far can this rally go?

Gold has surged to fresh all-time highs this week, pushing above US$5,300 per ounce for the first time ever. The move extends one of the strongest rallies the precious metal has seen in decades.

Prices are now up more than 20% over the past month, with spot gold currently trading around US$5,321 after hitting a record intraday high of US$5,325.49.

The surge reflects rising demand for defensive assets as investors respond to ongoing global uncertainty.

Why is gold surging?

A renewed rush into safe-haven assets has been the main driver. Rising geopolitical tensions, trade disputes, and ongoing uncertainty have unsettled markets, pushing investors toward gold as a store of value.

Currency moves have also helped. The US dollar has weakened in recent weeks, which makes gold cheaper for overseas buyers and boosts global demand.

Central banks are another important source of support. Many have been steadily increasing their gold holdings as they diversify away from the US dollar. That buying has continued into 2026, helping support prices as gold trades at record levels.

Interest rate expectations are also influencing demand. Markets are increasingly expecting interest rate cuts later this year. Lower rates make gold more attractive compared to cash and bonds, which offer less return when rates fall.

Strong demand is also being seen on the ground. Bullion dealers across Australia have reported long queues and strong retail interest as everyday investors look to buy physical gold during the rally.

How far can gold go from here?

Major investment banks have turned increasingly bullish. Several institutions now see gold prices holding above US$5,000 for an extended period, with some forecasts pointing toward US$5,500 or even US$6,000 if current conditions persist.

That said, short-term pullbacks are always possible after such a sharp move. Profit-taking, shifts in sentiment, or changes in currency markets could trigger volatility. Still, many analysts argue that the underlying drivers supporting gold remain firmly in place for now.

How can investors gain exposure?

Investors have several ways to gain exposure to gold, depending on their preferences and risk tolerance.

Buying physical gold bars or coins remains a popular option, though storage and insurance can add complexity.

Another approach is using exchange-traded products that track the gold price. For Australian investors, Global X Physical Gold Structured (ASX: GOLD) offers a simple way to gain exposure to physical gold through the ASX, without the need to store bullion directly.

Gold mining shares are another option, offering potential leverage to rising gold prices.

Foolish bottom line

Gold’s surge above US$5,300 highlights how strongly investors are responding to today’s mix of geopolitical risk, currency weakness, and shifting interest rate expectations.

While the rally may not be smooth from here, gold’s role as a defensive asset stands out in the current environment.

The key question is no longer whether the gold rally can continue, but how much exposure investors are comfortable taking on.

The post Gold hits $5,300! How far can this rally go? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.