Gold breaks $5,000, silver hits $110: The quantitative logic of including Gate precious metals contracts in the investment portfolio

At 5 a.m. in the morning, before the traditional London gold market opens, an Asian crypto trader is executing his hedging orders on Gate’s precious metals futures trading interface, using XAUUSDT perpetual contracts to short protect his large digital asset portfolio.

Over the past month, the price of XAGUSDT (silver) has broken through the psychological level of $100 per ounce, reaching a 24-hour trading volume of approximately $47.7 million as of January 27, 2026. Meanwhile, the price of XAUTUSDT (digital gold) remains stable at around $5,060.0.

Market Shift: The Blurring Boundaries Between Traditional and Digital Assets

The financial markets of 2026 are undergoing a structural transformation. Gold and silver have both hit record highs, with precious metals traditionally viewed as safe-haven assets experiencing unprecedented capital inflows.

At the same time, the correlation between the cryptocurrency market and gold is subtly changing. CITIC Securities recently pointed out in a research report that the crypto market and gold market are becoming increasingly similar, both forming a pattern of “rigid demand support and speculative pricing.” In the macro narrative of cryptocurrencies, the positioning of “digital gold” has never been clearer. As advocated by well-known investors like Robert Kiyosaki, a mixed allocation of gold, silver, Bitcoin, and Ethereum can achieve risk diversification effects.

The Divergence Logic of Gold and Silver

Silver’s performance is particularly noteworthy. The real-time price of XAGUSDT (silver) has reached $109.67, with a 24-hour increase of +2.11%, fluctuating between $102.73 and $118.32.

Behind silver’s market is solid industrial demand. The continued expansion of the photovoltaic industry, the recovery of the semiconductor sector, and the global green energy transition collectively form the long-term growth foundation for silver demand. Gold, on the other hand, more reflects changes in macro asset pricing structures. Expectations of Federal Reserve rate cuts, slower-than-expected inflation decline, and falling U.S. Treasury yields have made gold a core component of institutional investors’ asset allocation.

The correlation between gold and silver in 2026 has shown new characteristics: both benefit from risk aversion sentiment, but the driving logic differs significantly. This divergence provides more possibilities for portfolio construction.

Data Validation: When Precious Metals Meet Crypto Assets

Let’s look at a practical asset allocation case. If at the beginning of 2025, $1,000 is evenly allocated among Bitcoin, Ethereum, gold, and silver, then by the end of 2025, the value of this portfolio would increase to about $1,505.

It is worth noting that this return is mainly driven by precious metals, offsetting the negative performance of cryptocurrencies. Gold increased by about 71% during this period, silver surged approximately 148%, while Bitcoin and Ethereum declined by about 5% and 12%, respectively.

This performance difference reveals the importance of asset rotation in different market cycles. Especially during periods of high volatility in the crypto market, the steady performance of precious metals becomes a key factor in balancing the portfolio. Data clearly shows that including precious metals in crypto portfolios is not just a simple asset stacking but a systematic strategy based on market cycles, correlation analysis, and risk management.

Trading Dimensions of Gate’s Precious Metals Contracts

Traditional precious metals trading is limited by specific trading hours and regional restrictions, but Gate’s launch of precious metals USDT perpetual contracts breaks these barriers. Through a crypto derivatives framework, these traditional assets enable 24/7 price speculation and risk management. XAU and XAG USDT perpetual contracts are now officially live, supporting up to 50x leverage, with trading available year-round, 24/7. Users can access the precious metals section via Gate’s website or app contract pages to participate in trading.

As of January 27, 2026, according to Gate’s latest market data for precious metals USDT perpetual contracts: XAUTUSDT (digital gold) is priced at $5,060.0, with a 24-hour increase of +0.14%; XAUUSDT (gold index contract) is priced at $5,057.64, with a 24-hour increase of +0.27%.

These products allow traditional safe-haven assets like gold and silver to participate in the market through crypto derivatives, providing traders with real-time reflection of market changes.

Institutional Perspective: The Future Form of “Gold”

According to CITIC Securities’ research, over the long term, both gold and cryptocurrencies will serve as “future gold” in terms of monetary properties. The report explicitly states that cryptocurrencies possess inflation resistance and value storage functions similar to gold, and are undergoing a rapid formal assetization process.

Although in the short term, due to their lower degree of monetization compared to gold, cryptocurrencies’ safe-haven attributes are less stable, their long-term growth potential remains significant. Especially amid de-globalization and de-dollarization processes, both cryptocurrencies and gold will benefit from increasing monetization demand.

Looking at market performance in 2026, investors are re-pricing scarcity among Bitcoin, gold, and silver. The focus has shifted from simple supply to narratives, entry channels, liquidity, and portability. This change signifies a fundamental transformation in asset allocation frameworks. Investors are no longer simply classifying assets as “traditional” or “digital,” but are paying more attention to their functions and performance in specific market environments.

Strategic Framework for Building Future Portfolios

For investors wishing to incorporate precious metals into crypto portfolios, considering Gate’s platform features, the following strategic directions can be contemplated:

Cross-market hedging is one of the core applications. When the crypto market experiences significant volatility, inverse positions can be established through precious metals contracts to reduce overall portfolio volatility. For example, during anticipated crypto market corrections, appropriately increasing allocations to gold contracts.

Macro trend tracking is another important strategy. Based on macro factors such as inflation expectations, interest rate policy changes, and geopolitical risks, dynamically adjusting the allocation ratios of precious metals and crypto assets. The high volatility of silver contracts (XAGUSDT 24-hour price range from $102.73 to $118.32) provides ample space for trend trading.

Time arbitrage strategies fully utilize Gate’s 24/7 trading feature of precious metals contracts. Investors can trade during traditional metal market closures, using new information from crypto markets to capture cross-market price differences.

For long-term investors, periodic rebalancing strategies can be considered. Adjusting the allocation ratios of precious metals and crypto assets quarterly or annually based on changes in their correlation, maintaining the risk-return profile of the portfolio.

Emerging Trading Ecosystem

Gate’s precious metals section is not just a trading venue but a complete ecosystem integrating TradFi and crypto. By bringing traditional precious metals assets into crypto derivatives trading, Gate creates a unique value intersection for traders from different backgrounds. For traditional finance participants, precious metals perpetual contracts provide a familiar gold and silver exposure within a crypto environment. For crypto-native traders, these products are effective tools to incorporate precious metals into asset allocation and further diversify risk.

Market data shows that as precious metals prices enter a rapid upward phase, traders’ demand for flexible trading tools has significantly increased. Gate supports both long and short trading of gold and silver contracts, making them highly relevant in current market conditions. Looking ahead, as more traditional assets enter the crypto market in standardized contract forms, strategies and capital allocation across different asset classes will become more flexible. This trend is driving trading platforms toward a more complete global financial infrastructure.

Silver continues to lead in industrial demand, with the recovery of the photovoltaic and semiconductor industries pushing its price above the psychological threshold of $100 per ounce. Gold, amid the wave of global asset re-pricing, continues to rise steadily, maintaining above $5,060 as of January 27. Global capital is shifting from traditional safe assets like U.S. Treasuries and the dollar index toward precious metals, redefining the boundaries of “safe assets.”

On the Gate platform, the total 24-hour trading volume of XAU and XAG contracts has exceeded $54 million.