NEW YORK, Jan 28, 2026, 18:09 EST
- Spot gold climbed roughly 4% on Wednesday, nearing $5,400 an ounce as the rally extended into late January.
- The Fed kept rates steady, but two policymakers pushed for a cut, a move traders mostly ignored.
- Silver, platinum, and palladium saw gains as well, though a few analysts warned of possible short-term pullbacks in silver.
Gold prices jumped again on Wednesday, bringing the cash market close to $5,400 an ounce for the first time. The rally is drawing in a fresh wave of buyers.
This shift is significant since it’s no longer just about gold. Investors are snapping up a wider “safety trade” — assets they trust when political and growth forecasts appear uncertain — pushing silver and other precious metals higher too.
Markets barely moved after the Federal Reserve held interest rates steady, and traders seemed unmoved by Fed Chair Jerome Powell’s comments. Instead, attention stayed locked on the metals sector’s momentum and the underlying jitters driving it.
“The rally in the precious metals has kind of taken on a life of its own at this point,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Grant described gold as overbought—a technical signal that the price has surged enough to make a pullback more probable—but noted that aggressive dip-buying continued to push the market upward, setting $5,400 as the next major target.
Tai Wong, an independent metals trader, noted the complex pushed higher even as the Fed held its press conference. “Precious metals simply don’t care that the Fed is clearly in hiatus mode,” he said.
Crypto group Tether is weighing in on hard assets. CEO Paolo Ardoino revealed plans to put 10%–15% of the company’s investment portfolio into physical gold, supplementing the bullion that already underpins some of its products.
Silver climbed 3.3% to $116.69 an ounce, after reaching a record $117.69 on Monday. Prices have surged over 60% year to date. “A number of silver indicators suggest prices may be due a correction in the short term,” analysts at Standard Chartered said.
The downside remains clear: a swift, crowded rally risks unraveling as profit-taking kicks in. If the U.S. dollar strengthens or expectations for rate cuts shift, it will reveal if buyers are willing to step back in during pullbacks—particularly in silver, which has seen more volatile moves.
Gold stayed above $5,000 early in the Asian session as traders kept an eye on the dollar and new tariff threats from U.S. President Donald Trump. The metal climbed 1.2% to $5,067.84 an ounce by 1:00 p.m. in Singapore. Silver jumped 4.3% to $108.25, after hitting a record high over $117.71 in the previous session before pulling back.
Late Wednesday, spot gold pushed past the $5,400 threshold again, trading at $5,413.67 by 2209 GMT after reaching a new high of $5,418.39 earlier in the session. The surge followed escalating tensions after Trump called on Iran to strike a deal on nuclear weapons, with Tehran warning of retaliation.
Gold has climbed over 25% year-to-date, following a 64% surge in 2025. Meanwhile, buyers in Shanghai and Hong Kong are flocking to gold stores, betting the rally still has room to run.
Right now, the market’s juggling two timers: geopolitical news that can jostle risk appetite, and the Fed’s rate trajectory, with bets building on a first cut in June. Gold’s ability to stay above $5,400 without a sharper drop might determine if the “too-late-to-buy” narrative sticks.
