Gold surges to $5000 hitting a new high, US stocks experience the worst decline of the year, and the divergence of safe-haven assets intensifies

Spot gold continues to strengthen, reaching a intra-day high of $4,960.65 per ounce, hitting a new all-time high, with a monthly increase of 15%. Meanwhile, the three major U.S. stock indices recorded their largest single-day declines of the year, and Bitcoin fell below $88,000. The market is experiencing significant asset differentiation, with risk aversion sentiment rapidly intensifying to become the dominant force.

Market Divergence Worsens, Safe-Haven Assets Become Winners

According to the latest news, on January 21, the global financial markets showed a clear divergence:

This divergence reflects a core fact: global risk appetite is rapidly cooling, with funds flowing swiftly into precious metals and other traditional safe-haven assets.

Three Major Drivers Behind Gold’s Rise

Trump Tariffs and Geopolitical Shocks

Under repeated shocks from Trump tariff rhetoric and geopolitical uncertainties, market risk sentiment remains under pressure. The threat of the U.S. imposing tariffs on European allies further exacerbates global trade uncertainties, prompting investors to accelerate seeking safe-haven assets.

Central Bank Accumulation and De-dollarization Trend

According to BiyaPay analysts, against the backdrop of de-dollarization, geopolitical uncertainties, and ongoing central bank accumulation, the structural support for gold remains solid. This reflects a renewed recognition of gold’s long-term value as an international reserve asset.

Decreased Correlation with Stock Markets

Gold’s current correlation with stock markets has significantly decreased, greatly enhancing its diversification value in asset allocation. This means gold is no longer a passive asset following risk asset fluctuations but has become an independent safe-haven tool.

Dual Momentum Supports Future Trends

Analysts believe that gold currently possesses both short-term and long-term dual upward momentum. In the short term, rising risk aversion drives rapid price increases; in the long term, de-dollarization and central bank accumulation provide structural support. This suggests that short-term market corrections are more likely to be viewed as strategic opportunities rather than trend reversals.

The overall precious metals sector has entered a trend-based upward phase, with room for gold prices to continue rising. The current price of $4,960 is just a step away from the psychological threshold of $5,000, and breaking this level could attract more capital inflows.

Market Enters Risk Repricing Phase

The current market divergence indicates that the world is entering a risk re-pricing phase. Characteristics of this phase include:

• Risk assets (stocks, cryptocurrencies) under pressure
• Safe-haven assets (gold, silver) strengthening
• Investors need more flexible cross-market allocation capabilities
• Risks associated with single-asset allocations increase

In such an environment, investors capable of agile multi-market trading are more likely to effectively adjust assets and manage risks.

Summary

Gold approaching $5,000 and hitting a new all-time high reflects not only the strength of gold prices themselves but also a sharp increase in global risk aversion sentiment. In stark contrast to the largest decline of the year in U.S. stocks and pressure on Bitcoin, this indicates asset differentiation is occurring. The dual upward momentum of gold, supported by structural factors such as central bank accumulation and de-dollarization, makes it one of the few defensive assets in the current high-volatility environment. For investors, the most important focus at this stage is to develop flexible multi-asset allocation capabilities rather than betting on the rise or fall of a single asset.