New York, Jan 29, 2026, 10:02 ET — Regular session underway.
- Spot gold climbed over 1%, hovering close to record highs following an initial surge to $5,595 an ounce.
- Traders cited the Fed’s decision to hold rates steady and a fresh spike in geopolitical tensions as the immediate drivers.
- Gold-linked U.S. assets, from bullion ETFs to miners, remained steady as the metal’s rally in January showed no signs of slowing.
Spot gold climbed 1.2% to $5,483.75 an ounce, having briefly surged to $5,595.44 earlier. 1
This shift is crucial as the rally bumps up against changing U.S. interest rates. The Federal Reserve kept its benchmark rate steady at 3.50%-3.75% on Wednesday. Chair Jerome Powell emphasized that future policy decisions will depend on upcoming economic data. 2
Gold has been reacting sharply to recent headlines and fund flows. On Wednesday, U.S. President Donald Trump urged Iran to return to nuclear deal talks, while Tehran threatened retaliation. At the same time, Tether’s CEO announced plans to put 10%-15% of its investment portfolio into physical gold, according to Reuters. “Investors always like to go where they can get high returns,” said Brian Lan, managing director at GoldSilver Central. 3
In rates markets, the dollar regained ground and yields remained high following the Fed meeting. The 10-year Treasury yield hovered near 4.25%, while the dollar index kept its daily advance after bouncing back from a four-year trough, a Reuters report showed. 4
Gold-backed exchange-traded funds (ETFs)—which trade like stocks but hold physical bullion—were in the spotlight, signaling trends in retail and institutional buying. SPDR Gold Shares climbed roughly 2.3% in late morning trading, and Newmont added around 1.1%.
Gold is stuck in a tricky spot. On one hand, expectations for lower rates help since bullion doesn’t yield interest. On the other, a stronger dollar and rising real yields could quickly weigh on prices if investors start betting the Fed will hold off longer than expected.
Positioning risk is also in play. As prices hit new highs nearly every day, some traders brace for a sharp drop if geopolitical tensions ease or macroeconomic data triggers a reassessment of the Fed’s trajectory.
Silver stayed close to record highs, highlighting the flow of speculative cash spreading across precious metals rather than targeting specific assets.
On Friday at 8:30 a.m. ET, the U.S. Producer Price Index (PPI) for December will drop. Traders watch this closely to assess inflation upstream in the supply chain. 5
