New York, January 28, 2026, 06:12 EST — Premarket
- Spot gold surged past $5,300/oz, marking a new high after a strong two-day rally
- Traders are preparing for the Fed’s rate decision and Jerome Powell’s press conference set for Wednesday
- Gold proxy ETF GLD climbed 2.45% on Tuesday, with miners following bullion’s surge this week
Gold prices surged past $5,300 an ounce Wednesday, hitting a new record as the dollar hovered near four-year lows and investors sought refuge in bullion. Spot gold jumped 1.7% to $5,275.68, peaking at $5,311.31, while U.S. February gold futures soared 3.7% to $5,271.70. The metal has gained over 20% this year. “Any one of the candidates … will probably be less resistant than Powell to Trump’s demands,” said WisdomTree commodities strategist Nitesh Shah, following President Donald Trump’s announcement that he will soon pick a Fed chair. (Reuters)
Timing is key. The Fed’s policy statement drops at 2:00 p.m. ET, with Powell’s press conference slated for 2:30 p.m., according to the central bank’s schedule. Gold usually acts as a “safe haven” — investors turn to it during policy jitters — and it typically gains when interest rates seem poised to decline since it yields no interest. (Federal Reserve)
A weaker dollar has provided the boost. The dollar index dropped 0.9% on Tuesday, settling at 96.23 and briefly hitting a four-year low of 95.566. That decline pushed prices higher for most commodities priced in dollars. Goldman Sachs analysts highlighted upside risk to their $5,400 target for December, while Deutsche Bank suggested $6,000 could be reached if the dollar remains soft. (Reuters)
Tuesday’s rally showed no signs of slowing. Spot gold surged over 3%, climbing to $5,181.84 after breaking the $5,000 barrier for the first time just a day earlier. “Rallies normally end because the drivers that took people into the gold market originally dissipate — and that’s just not the case,” said Michael Widmer, commodities strategist at Bank of America. (Reuters)
Gold-backed funds stayed on track. SPDR Gold Shares (GLD) ended Tuesday up 2.45%, closing at $476.10, according to Nasdaq data. (Nasdaq)
Miners outpaced bullion’s move Monday. Newmont climbed 4.3% in U.S. premarket trading, while Barrick Mining’s U.S.-listed shares added 3.4% as gold surged past $5,100 an ounce. Societe Generale analysts predict gold could hit $6,000 by year-end, though they warn it might climb even higher. (Kitco)
Derivative markets are buzzing as well. On Jan. 26, CME Group’s metals complex surged to a one-day record of 3,338,528 contracts, surpassing the previous high from October. (CME Group)
This kind of rally can easily reverse. A hawkish shift from Powell or a slight bounce in the dollar might trigger profit-taking after such a sharp surge. Plus, physical demand often dips when prices jump this quickly.
Sentiment took a hit as U.S. consumer confidence dropped 9.7 points in January, landing at 84.5—the lowest level since May 2014, according to the Conference Board. Dana Peterson, the group’s chief economist, pointed to “widespread pessimism,” with consumers voicing concerns about prices, tariffs, and politics. (Reuters)
The next hurdle is the Fed meeting Wednesday. Traders are also watching the midnight Jan. 30 funding deadline in Washington closely, as it could ramp up demand for hedges if it sparks a shutdown battle. (CRFB)
