The trader is considering a $4 million profit as gold prices surpass the $5,000 mark.

Gold prices have surpassed the $5,000 per ounce mark, signifying a historic milestone for the precious metal.

This development reflects growing investor concerns about the continued decline of the US dollar, while Bitcoin and Ethereum remain below key thresholds.

Gold prices surpassed $5,000 as the dollar weakened.

At the time of writing, gold is trading around $4,987, after setting a daily high of $5,009 on January 24th. The precious metal has risen nearly 20% in just the past 24 hours.

Meanwhile, the US dollar index (DXY) has fallen sharply to 97.45, its lowest level in months. The last time the index hit this Dip was in September 2025.

This milestone coincides with a notable on-chain transaction, where a trader on the Bybit exchange deposited 7 million USDT and withdrew 843 XAUT worth $4.17 million. This demonstrates the growing interest in gold Token as a hedge against fiat currency volatility.

Lookonchain, a blockchain transaction tracking platform, detected this activity and highlighted that it was one of the largest XAUT purchases in recent months.

This transaction could indicate profit-taking or a shift in investment strategy as gold reaches unprecedented price levels.

Although cryptocurrencies are often considered an alternative to fiat currency, this development further highlights the stability of gold when compared to digital assets.

Ethereum is currently trading at $2,958 and Bitcoin at $89,615 , while gold's upward momentum has far outpaced major cryptocurrencies in recent weeks. This reflects gold's continued safe-haven Vai , especially amid macroeconomic uncertainty.

The weakening of the US dollar is the main reason for the sharp rise in gold prices. According to some recent assessments, in just one year, the US dollar has lost nearly 50% of its value against gold – the sharpest decline in US history.

Could a weakening US dollar and pressure from commodities push gold prices up to $6,500?

Experts warn that the continuously weakening US dollar is fueling a wave of investment in gold and other inflation-sheltered assets.

In this context, the overall sentiment towards gold remains positive, especially in the short term.

“Gold prices in the coming weeks and months could continue to rise to the $5,400-$5,600 range, then possibly correct by 10%, consolidate, and continue towards the $6,500 mark by the summer of 2026. If this scenario occurs, it would be an increase of about 30% compared to the current price…,” Chia to investment manager and financial expert Rashad Hajiyev.

This forecast is also consistent with Goldman Sachs ' assessment that gold prices could reach $5,400 in 2026. Some reports even suggest that Bank of America predicts gold could reach $6,000 by spring 2026.

Copper shortages and a weakening US dollar highlight gold as a safe-haven asset.

The sharp rise in gold prices also reflects the increasing pressure between commodity markets. Mining billionaire Robert Friedland recently highlighted the supply shortage in the copper market. He warned that the world will face a copper shortage to sustain global GDP growth and meet the electrification trend.

“We are consuming 30 million tons of copper every year, but only 4 million tons are recycled… In the next 18 years, humanity will need to mine an amount of copper equivalent to the total amount we have mined over the past 10,000 years,” Friedland Chia , highlighting the scarcity pressure on many commodity markets, including precious metals.

The combination of a weak US dollar, strained supply chain , and the historic surge in gold prices creates both opportunities and risks.

The $4.17 million XAUT transaction on Bybit could be a sign that institutions will become increasingly interested in gold Token in the future.

Furthermore, the current macroeconomic situation also suggests that gold will continue to be an important hedge for preserving assets, especially as the crypto and fiat currency markets are experiencing significant volatility.