Gold breaks $5,000 for first time as dollar weakens
Gold tops $5,000/oz as the dollar falls on fears the US may back Japan’s yen intervention. US stock futures dip in Asia on shutdown worries.
Gold climbed above $5,000 an ounce for the first time on Monday morning (Jan 26, 2026), as the US dollar weakened amid concerns that the US may help Japan with currency intervention, while the yen strengthened.
Bloomberg reported that the dollar fell in early Monday trading, as investors weighed signs the US could join Japan in defending its currency. Spot gold rose 0.7% to $5,024.61 an ounce in the morning.
The dollar weakened against all G10 currencies, while the yen strengthened after Japanese Prime Minister Sanae Takaichi warned markets on Sunday.
There were also signals on Friday that the US could participate with Japan in protecting the country’s currency. The dollar posted its biggest weekly drop since May last week amid unpredictable US policy, rising tariff tensions between the US and Europe, and renewed attacks on the Federal Reserve’s independence.
US stock index futures fell in early Asian trading as concerns grew about another potential US government shutdown.
These risks could push the dollar even lower, said Vaibhav Lumba, head of foreign exchange and rates at Klay Group, who expects the US dollar index to fall 3% to 5% by the end of June.
“The main factor behind this is tariffs. I think the talk about separation won’t fade until mid-May,” he said.
Attention has also returned to the dollar and Japan after a rapid rise in Japanese government bond yields unsettled global bond markets last week.
The days ahead are seen as crucial for investors, as the Federal Reserve is set to announce its policy decision, and major companies such as Microsoft and Tesla are due to report earnings.
