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. (Reuters)
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. (mint)
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. (Reuters)
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%. (Investing)
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. (Reuters)
The Financial Times also linked gold’s new high to the dollar’s slide. (Financial Times)
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.
