New York, Jan 27, 2026, 17:03 (EST) — After-hours trading
- Spot gold surged over 3%, hitting a new record past $5,180 an ounce.
- Traders are on edge ahead of the Fed’s Jan. 27-28 meeting and the U.S. funding deadline looming on Jan. 30.
- Big banks have raised their targets, as CME reported record-breaking metals derivatives volume.
Gold surged over 3% Tuesday, vaulting past $5,187 an ounce to hit a new record high as the U.S. session wound down. Spot prices hovered near $5,175 an ounce afterward. (Kitco)
The urgency is clear as multiple risk factors collide — fresh tariff threats, a U.S. government funding deadline fast approaching, and a Federal Reserve meeting that could shift rate outlooks. February U.S. gold futures held steady, closing at $5,082.60. Michael Widmer, Bank of America’s commodities strategist, was straightforward: “Rallies normally end because the drivers that took people into the gold market originally dissipate – and that’s just not the case.” (Reuters)
Gold is known as a “safe-haven” asset—investors flock to it when they want to dial back exposure to stocks or geopolitical risks. Since it doesn’t pay interest, gold usually attracts buyers when traders suspect U.S. rates have topped out or could decline.
The move comes after Monday’s surge past $5,100 and a clean break through the $5,000 mark for the first time, pushing gold sharply higher this year. Ryan McIntyre, president of Sprott Inc, noted, “Central banks remain strong buyers as they diversify foreign exchange reserves and reduce reliance on the U.S. dollar.” Adrian Ash, head of research at BullionVault, summed up the main factor driving the rally as “Trump and Trump.” (Reuters)
Targets have climbed alongside gold’s price. On Tuesday, Deutsche Bank projected gold could hit $6,000 per ounce by 2026, adding that in alternate scenarios, $6,900 would better reflect the metal’s outperformance over the past two years. Societe Generale also pointed to $6,000 by year-end, while Morgan Stanley and Goldman Sachs laid out even higher price scenarios in recent reports. (Investing)
Derivatives markets are heating up as well. CME Group reported a new single-day record of 3,338,528 contracts in its metals complex on Jan. 26. Executive Jin Hennig noted that “clients are turning to our markets to hedge and adjust precious metals exposure.” CME also announced it intends to launch 100-ounce silver futures on Feb. 9, subject to regulatory approval. (PR Newswire)
Elsewhere in precious metals, silver has flipped sharply near record highs, while platinum and palladium are posting bigger daily swings than traders saw a year ago. This spillover hits gold hard, driving volatility and triggering margin calls throughout the complex.
Still, the rally isn’t without risk. A hawkish Fed, rising U.S. yields, or a dollar bounce could spark profit-taking. That’s especially true after a move that’s begun to feel disorderly, even for bullion.
The next major event is the Fed’s policy meeting on Jan. 27-28, capped by Chair Jerome Powell’s press conference at 2:30 p.m. on Jan. 28. (Federal Reserve)
Traders are now focused on the Jan. 30 U.S. funding deadline and any moves on tariff plans. Gold has been acting like a barometer for policy risk — if that risk fades, the metal will need a fresh catalyst to hold its current level.
