Gold’s blistering rally continues past US$5,200 as dollar plunges to four-year low
The Fed is expected to hold rates steady at its January monetary policy meeting, currently underway
Published Wed, Jan 28, 2026 · 09:50 AM — Updated Wed, Jan 28, 2026 · 12:34 PM
[BENGALURU] Gold broke through US$5,200 for the first time on Wednesday (Jan 28), after rising more than 3 per cent on Tuesday, as the US dollar plunged to a near four-year low amid persisting geopolitical concerns, ahead of a US Federal Reserve monetary policy decision.
Spot gold jumped 1.1 per cent to US$5,243.58 per ounce, as at 11.14 am, after scaling a record high of US$5,247.21 earlier, up more than 20 per cent since the start of the year.
US gold futures for February delivery surged 3.1 per cent to US$5,237.70 per ounce.
“(Gold’s rise) is due to the very strong indirect correlation with the dollar and yesterday’s price-rise in gold in the US session was due to Trump’s remark to a casual question about the dollar which implied that (there is) a broad-based consensus within the White House to have a weaker greenback going forward,” said Kelvin Wong, a senior market analyst at Oanda.
The US dollar was grappling with a “crisis of confidence” as it struggled near four-year lows, exacerbating US dollar selling, after President Donald Trump said the currency’s value is “great” when asked whether he thought it had declined too much.
US consumer confidence, meanwhile, slumped to its lowest level in more than 11½ years in January amid mounting anxiety over a sluggish labour market and high prices.
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Trump added that he will soon announce his pick to serve as head of the US central bank, and predicted interest rates would decline once the new chair takes over.
The Fed is widely expected to hold rates steady at its January monetary policy meeting, currently underway.
Wong added that near-term resistance for gold could be seen around US$5,240/oz. Deutsche Bank said on Tuesday that gold could climb to US$6,000 per ounce in 2026, citing persistent investment demand as central banks and investors increase allocations to non-dollar and tangible assets.
Spot silver was up 1.9 per cent at US$115.11 an ounce, after hitting a record high of US$117.69 on Monday. The white metal has already jumped almost 60 per cent so far this year.
Spot platinum gained 2 per cent to US$2,692.60 per ounce after hitting a record US$2,918.80 on Monday, while palladium was up 1.4 per cent at US$1,961.68. REUTERS
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