NEW YORK, Jan 29, 2026, 13:33 ET — Regular session
- Spot gold slipped roughly 1.2% to around $5,350/oz, following a sharp swing from a new record high
- Traders are processing the Fed’s decision to hold rates steady and eyeing Trump’s choice to succeed Powell, whose term expires in May
- The World Gold Council announced a record demand for 2025, driven largely by investment and ETF inflows
Spot gold slipped Thursday afternoon in New York, hovering near $5,349.70 an ounce. It dropped $64.30 on the day following a choppy session that pushed prices from about $5,107 to $5,596, according to Kitco data.
The pullback came after a sharp plunge earlier in the session, with spot gold tumbling 4.6% to $5,149.99 by 10:48 a.m. ET, down from a fresh record of $5,594.82. Meanwhile, U.S. gold futures for February slipped 2.8% to $5,156.20. Despite the drop, gold still gained 19% in January, on track for its strongest monthly performance since the 1980s. David Meger, metals trading director at High Ridge Futures, described the move as “a dramatic sell-off,” while Brian Lan of GoldSilver Central noted demand now stretches from “crypto money to central banks,” as fresh buyers chase bullion. Reuters
Traders grappled with the Federal Reserve’s Wednesday decision to keep rates unchanged, while markets brace for President Donald Trump to pick Jerome Powell’s replacement ahead of his term ending in May. Despite this, investors still price in a rate cut by June. Two Fed governors broke ranks, favoring a quarter-point reduction. Peter Grant at Zaner Metals noted the rally had “taken on a life of its own,” even as technicals flagged it as overbought—a sign the surge might pause. Gold, a go-to safe haven during market jitters, often gains when rates drop. Tai Wong described the metals complex as “in hiatus mode” on policy, yet prices continued to climb. Reuters
The dollar strengthened, adding pressure. After the Fed announcement, the dollar index climbed 0.36% to 96.51. Meanwhile, oil prices surged amid renewed U.S.-Iran tensions, which had earlier driven gold to its ninth consecutive record before some profit-taking took hold, according to a separate Reuters market report.
On paper, longer-term demand stays solid. The World Gold Council reported global gold demand climbed 1% in 2025, hitting a record 5,002 metric tons. Investment demand surged 84% to 2,175 tons, boosted by inflows into exchange-traded funds (ETFs) — which hold bullion and issue shares. John Reade, the council’s senior market strategist, flagged the “biggest question this year”: can investment demand remain strong enough to support prices as jewellery buying slips. Reuters
Flows are drawing attention. The SPDR Gold Trust, the biggest gold-backed ETF, logged holdings close to a four-year peak this week. At the same time, stablecoin issuer Tether announced plans to move 10%-15% of its investment portfolio into physical gold.
Other precious metals also took a hit. Spot silver slid 6.6% to $108.84 after reaching a high of $121.64 earlier. Platinum dropped 1.7% to $2,650.15, and palladium tumbled 6.7% to $1,935.
That rally leaves scant margin for error. Any uptick in the dollar or a tweak in rate outlooks might spark forced selling, particularly in thinly traded markets where speculative flows can push prices quicker than real demand. The key question remains: Will upcoming policy moves and geopolitical news ignite the rally further or bring it to a halt?
Bank of America commodities strategist Michael Widmer said Tuesday that gold rallies usually lose steam when their main drivers disappear — but “that’s just not the case” now, citing ongoing uncertainty and steady demand. Deutsche Bank and Societe Generale have both predicted gold could hit $6,000 an ounce by year-end. Traders are also keeping an eye on U.S. funding talks looming ahead of the Jan. 30 deadline. Reuters
Next on the docket: Trump’s call on the Fed chair and the Jan. 30 U.S. funding deadline. Any fresh U.S.-Iran news could also shake up the dollar and gold markets. Traders are keeping an eye on whether spot gold can stay above $5,000, a key level it crossed earlier this week.
