January 23, 2026—There was one clear winner amid the geopolitical tensions rocked by the U.S. encroachment into allies’ domains: Gold. The price of the precious metal climbed by 8 percent this week, from $4,600 a troy to $5,000. It was its biggest single week since the global financial crisis in 2008.
It is notable because it could foreshadow economic instability and inflationary pressures for the average consumer. It could also indicate a weakening position of the United States.
Asset of Last Resort
Gold is traditionally an asset of last resort. Countries started moving off the gold standard in the 1930s to manage the Great Depression. The United States officially severed the link between the U.S. dollar and gold in 1971.
Today, the metal shines brightly, along with silver, among central bankers in countries like China, India, and Poland.
Gold and silver already hit record highs earlier this month. This week, disparities in currency and commodity prices continued even though the U.S. posture softened from its bellicose language. By midweek, U.S. President Donald Trump backed off his threat to impose sanctions against European allies and use military force against Denmark’s territory of Greenland, the friction created a lasting instability. Trust in the United States fell, along with the U.S. dollar.
Reporting on the shift in sentiment, the Financial Times said, “Investors have described the U.S. threats against NATO allies as further ‘chipping away’ at the institutional credibility of the world’s dominant asset market, mixing with concerns over White House attacks on the Fed.”
U.S. Dollar Down 9 Percent Year-on-Year
The price of the U.S. dollar against a basket of currencies (DXY) was down from 108 in January 2025 to 97.7 today. U.S. markets recovered after global investors ran with a “sell America” approach earlier this week. But anxieties over geopolitics have hit the greenback, sending it down 9 percent over the past year.
Further upsetting trust in the U.S. dollar, the Trump administration kept up pressure on the U.S. Federal Reserve, hitting Fed Chair Jerome Powell with a criminal subpoena and a move to fire Lisa Cook as a member of the Federal Reserve Board of Governors.
Precious Metals, Risk and Reward
Risks are high in investing in precious metals, but investors are some of the largest banks are valuing them higher. For example, Daan Struyven, Co-Head of Global Commodities at Goldman Sachs, raised the bank’s target price on gold to $5,600, emphasizing the central bank.
Meanwhile, the global elite who meet annually at the World Economic Forum acknowledged greater uncertainty even as many sidestepped the bigger questions of fault.
Asked about geopolitics, JPMorgan CEO Jamie DimonJamie Dimon Played It Safe in Comments; Trump Sued Him Anyway said the United States is still a military ally of 40 countries, suggesting continuity, but conceded that relations have changed.
“It’s not a rupture. If you said to me, ‘Has America become unreliable?’ No. It’s just you had total reliance, and now it’s less reliable,” he said.
