NEW YORK, Jan 28, 2026, 13:37 EST — Regular session
Gold prices surged past $5,300 an ounce on Wednesday, hitting a fresh record as the U.S. dollar hovered near multi-year lows ahead of the Federal Reserve’s policy announcement. Spot gold jumped 1.9% to $5,289.48 by 12:45 p.m. ET, after reaching $5,311.31 earlier. Meanwhile, U.S. gold futures for February climbed 4% to $5,286.50. The Fed’s decision is scheduled for 2 p.m. ET, with traders closely watching Chair Jerome Powell’s remarks for hints on future interest rate moves.
The U.S. dollar bounced back on Wednesday after a steep drop the previous day, but pressure on the currency persists. The dollar index — which tracks the greenback against six major currencies — climbed 0.5% to 96.391, recovering from Tuesday’s low of 95.86, its weakest level since February 2022. The slide came after comments from President Donald Trump. “Pretty logical, really,” said Michael Brown, market analyst at Pepperstone, regarding the rebound following Treasury Secretary Scott Bessent’s pushback against talk of a softer dollar. Reuters
Markets are viewing the Fed statement as just the opening act. The central bank is set to hold rates steady, with Powell speaking roughly 30 minutes after the 2 p.m. announcement. Traders are focused on clues about how long this rate pause might last. “There is no urgency to lower rates aggressively,” said Seema Shah, chief global strategist at Principal Asset Management, citing a still-resilient economy and inflation expected to remain above the Fed’s 2% target. Reuters
Gold has sprinted for three straight sessions. On Tuesday, spot gold jumped over 3% to $5,181.84. CME Group reported a record-breaking day for its metals complex with 3,338,528 contracts traded on Jan. 26. February futures closed nearly flat at $5,082.60. “Rallies normally end because the drivers … dissipate – and that’s just not the case,” said Michael Widmer, a commodities strategist at Bank of America, as traders digested U.S. tariff threats and the looming Jan. 30 government funding deadline. Reuters
Spot gold surged to $5,110.50 on Monday, climbing 2% to $5,077.22 by early afternoon amid rising geopolitical tensions and tariff news that pushed investors toward safe havens. Ryan McIntyre, president of Sprott Inc, noted that central banks continue to buy heavily as they diversify reserves, while physically backed gold ETFs have seen inflows rebound, with holdings up roughly 20% from a year ago. Adrian Ash, research chief at BullionVault, boiled down the political risk to “Trump and Trump,” highlighting tariff threats—including a potential 100% tariff on Canada if it moves forward with a China trade deal—and added to that the jitters around the Fed chair. Reuters
The surge is hitting retail outlets across Asia. Reuters observed crowds filling gold shops in Shanghai and Hong Kong. “There are still quite a lot of people buying it,” said seller Zhao Jinhao. Simon Littmann, executive manager at Swiss Investors Corporation Limited, reported that January sales were his best in about 20 years, although strong demand has delayed small-bar deliveries. Reuters
Gold’s sharp climb has pushed it into technically overbought territory—a term traders use when prices surge too quickly and risk pulling back. Peter Grant, vice president and senior metals strategist at Zaner Metals, said the rally has “taken on a life of their own,” but cautioned that gold “remains overbought and vulnerable to a correction,” even as dip-buying keeps the momentum alive. He also noted weak retail demand at these levels alongside refiners struggling with backlogs. StreetInsider.com
Gold-linked funds and miners followed the metal higher in New York trading. SPDR Gold Shares jumped roughly 2.7%, and iShares Gold Trust edged up around 2.8%. VanEck Gold Miners ETF gained about 1.6%. Newmont outpaced them all, rising roughly 3.6%, with Agnico Eagle Mines close behind, up about 2.8%.
The currency market is stirring after a lengthy quiet spell. Reuters’ Morning Bid highlighted the euro breaking above $1.20 for the first time in over four years amid faster dollar selling. It also pointed out how hedging strategies shift when foreign investors can snag roughly 4% on Treasuries yet still face losses from FX swings. This mix has driven gold prices up, even as U.S. stocks hit new highs.
Traders are zeroing in on the Fed decision at 2 p.m. EST, with Powell’s news conference 30 minutes after that drawing close attention for any signs against rate cut speculation and for clues on the Fed’s independence. Beyond that, the January 30 U.S. funding deadline and trade developments loom, either capable of jolting the dollar and, by extension, gold prices.
