Finance
Gold's blistering rally continues past $5,200 as dollar plunges to 4-year low
Published by Global Banking and Finance Review
Posted on January 28, 2026
2 min readLast updated: January 28, 2026
Quick Summary
Gold prices surpass $5,200 as the dollar falls to a 4-year low, fueled by geopolitical tensions and strong investment demand.
Gold's blistering rally continues past $5,200 as dollar plunges to 4-year low
Gold Market Overview
By Ishaan Arora
Impact of Dollar Weakness
Jan 28 (Reuters) - Gold broke through $5,200 for the first time on Wednesday, after rising more than 3% on Tuesday, as the dollar plunged to a near four-year low amid persisting geopolitical concerns, ahead of a U.S. Federal Reserve monetary policy decision.
Future Price Predictions
Spot gold rose 0.6% to $5,219.97 per ounce, as of 0153 GMT, after scaling a record high of $5,224.95 earlier, up more than 20% since the start of the year.
Related Precious Metals Performance
U.S. gold futures for February delivery surged 2.6% to $5,216.80 per ounce.
"(Gold's rise) is due to the very strong indirect correlation with the dollar and yesterday's price-rise in gold in the U.S. session was due to Trump's remark to a casual question about the dollar which implied that (there is) a broad-based consensus within the White House to have a weaker greenback going forward," said Kelvin Wong, a senior market analyst at OANDA.
The U.S. dollar was grappling with a "crisis of confidence" as it struggled near four-year lows, exacerbating dollar selling, after President Donald Trump said the currency's value is "great" when asked whether he thought it had declined too much. [USD/]
U.S. consumer confidence, meanwhile, slumped to its lowest level in more than 11-1/2 years in January amid mounting anxiety over a sluggish labor market and high prices.
Trump added that he will soon announce his pick to serve as head of the U.S. central bank, and predicted interest rates would decline once the new chair takes over.
The Fed is widely expected to hold rates steady at its January monetary policy meeting, currently underway. [FEDWATCH]
Wong added that near-term resistance for gold could be seen around $5,240/oz. Deutsche Bank said on Tuesday that gold could climb to $6,000 per ounce in 2026, citing persistent investment demand as central banks and investors increase allocations to non-dollar and tangible assets.
Spot silver was up 0.6% at $113.63 an ounce, after hitting a record high of $117.69 on Monday. The white metal has already jumped almost 60% so far this year.
Spot platinum gained 1.5% to $2,679.15 per ounce after hitting a record $2,918.80 on Monday, while palladium was up 0.9% at $1,951.93.
(Reporting by Ishaan Arora in Bengaluru; Editing by Alan Barona and Rashmi Aich)
Key Takeaways
- •Gold prices exceed $5,200 due to a weak dollar.
- •Geopolitical concerns drive gold's rise.
- •US Federal Reserve's policy impacts market.
- •Investment demand boosts gold's future outlook.
- •Precious metals like silver and platinum also rise.
Frequently Asked Questions about Gold's blistering rally continues past $5,200 as dollar plunges to 4-year low
1What is gold?
Gold is a precious metal that is highly valued for its use in jewelry, electronics, and as an investment. It is often seen as a safe haven during economic uncertainty.
2What is monetary policy?
Monetary policy refers to the actions taken by a country's central bank to control the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation and stabilizing currency.
3What is a currency?
A currency is a system of money in general use in a particular country or economic region, serving as a medium of exchange for goods and services.
4What are precious metals?
Precious metals are rare metallic elements that have high economic value, including gold, silver, platinum, and palladium, often used in jewelry, investment, and industrial applications.
5What is investment demand?
Investment demand refers to the desire of investors to purchase assets, such as stocks, bonds, or commodities, with the expectation of generating a return on their investment.