Gold and Silver: Likely to Reach $5,000 and $100 in January

On Thursday in January, the precious metals market showed strong momentum, with gold rising above $4,950 per ounce while silver approached $99. These two are likely to reach major milestones of $5,000 for gold and $100 for silver, according to prediction markets and analyst outlooks. This rally demonstrates ongoing investor interest in traditional hedges against macro uncertainty.

Major Price Gains - Gold Nearing $5,000

Gold increased by approximately 2.5% that day, approaching $4,950, while silver gained over 6% and reached nearly $99. Over the month, gold advanced more than 7%, and silver grew by nearly 30%—a performance surpassing most major asset classes. These prices are not only following technical levels; they reflect deeper shifts in risk sentiment and demand for traditional safe-haven assets.

Market Predictions: Where Are Traders Focusing?

Prediction markets like Polymarket show strong conviction that $5,000 for gold is likely not just a resistance level but a stepping stone to higher prices. Contracts are heavily centered on reaching or exceeding that level by the end of the month. For silver, markets show similar patterns, with large positions betting on the chance to hit $100.

Experts like Goldman Sachs have updated their forecasts for the end of 2026, raising the target price of gold to $5,400 per ounce from $4,900, allowing for even higher upside at current levels. This positioning reflects increased confidence that the rally has substance.

Volatility and Macro Uncertainty - Investor Strategies

Realized volatility for silver has reached the high-60s, while gold remains relatively controlled in the low-20s, indicating a more orderly repricing. This pattern reflects a shift in investor sentiment: funds are moving from riskier assets toward traditional hedges against macroeconomic uncertainty.

In comparison, Bitcoin has experienced declining volatility in the mid-30s even as prices remain near historical highs, showing different market dynamics. BTC is currently trading at $87.99K, prompting some investors to shift strategies toward commodities.

Cryptocurrency and Other Assets - How Momentum Compares

While gold and silver are rising, the cryptocurrency market shows mixed signals. Ethereum has fallen to $2.95K, below previous levels. Meanwhile, XRP declined about 4% over the month, but on-chain data indicates continued investor interest, with $91.72 million in net inflows into US-listed spot XRP ETFs for the month.

This divergence illustrates how different asset classes perform during macro resets. The precious metals are experiencing stronger demand, suggesting that market risk-off sentiment may persist in the short term, while investors are rebalanceing their portfolios toward more defensive positions.