LONDON, Jan 28, 2026, 09:11 GMT
- Gold hit a fresh record above $5,300 as the dollar slid to near four-year lows and markets awaited the Fed.
- Banks lifted forecasts and strategists cited tariffs, geopolitics and demand for non-dollar assets.
- Gold miners Newmont and Barrick rallied, though some investors flagged “overbought” signals in commodities.
Gold broke through $5,300 for the first time on Wednesday as the dollar slid to near four-year lows after President Donald Trump called its value “great” and said he would soon name his pick to head the Federal Reserve. Spot gold rose 2.3% to $5,305.65 an ounce by 0832 GMT, after a record $5,311.31; U.S. February futures climbed 4.3% to $5,301.90. OANDA’s Kelvin Wong pointed to a “very strong” inverse link to the dollar, while Tastylive’s Ilya Spivak said markets were “getting defensive” ahead of Chair Jerome Powell, with the Fed expected to hold rates steady. 1
An Economist analysis called the move part of a “debasement trade” — investors worried about fiscal splurges, fraught geopolitics and weakening institutions dumping bonds and dollars and buying gold. It said bullion is up more than 17% this year and first rose above $5,000 an ounce on Jan. 26, averaging a 0.6% daily gain on 27 stock sell-offs since April 2 last year. Holdings in gold exchange-traded funds (ETFs), which let investors buy exposure to metal like a stock, have risen above 4,000 tonnes, with Asia-based ETF holdings more than tripling over two years to 460 tonnes. 2
On Tuesday, spot gold jumped more than 3% to an all-time high of $5,181.84, as traders pointed to renewed tariff threats and a looming U.S. government funding deadline, alongside expectations of interest-rate cuts and central-bank buying. Deutsche Bank and Societe Generale now forecast $6,000 an ounce by year-end, and Bank of America’s Michael Widmer said rallies end when the drivers fade — “and that’s just not the case.” Silver has already risen more than 57% this year and Citi lifted its short-term target to $150 an ounce. 3
The bullion run has spilled into miners, whose earnings often rise faster than gold when prices jump. Newmont rose 4.4% in U.S. premarket trade on Monday and Barrick Mining climbed 3.8%, while Gold Fields, AngloGold Ashanti, Harmony Gold and Sibanye Stillwater were up about 2% to 4.3%. 4
Not everyone is chasing: Canada’s main stock index slipped on Monday after hitting another record, and Greg Taylor, chief investment officer at PenderFund Capital Management, called commodities “a little overbought” as profit-taking set in. Gold miners still gained 0.9% on the day as spot prices briefly moved past $5,100, Reuters reported. 5
The Financial Times also linked gold’s new high to the dollar’s slide. 6
Gold typically benefits when rates fall because it pays no interest, and a weaker dollar lowers the cost for buyers using other currencies. The next signal is Powell’s press conference and whether he pushes back on bets for U.S. rate cuts.
But a rally built on fear can unwind fast. If the dollar steadies or Washington tensions cool, gold and miners could see sharp pullbacks, especially after a run of record highs.
For now, investors are watching whether the metal can hold above $5,000 long enough for miners’ cash flow and dividends to catch up with the price chart.
