Gold Surges to Record High, Exceeding $5,300 Amid Dollar Decline
Gold prices soared to unprecedented levels, reaching $5,311.31 per ounce on January 28, 2026. This surge is attributed to declining confidence in the U.S. dollar and ongoing concerns regarding the independence of the U.S. Federal Reserve.
Factors Contributing to Gold’s Record High
On this notable day, spot gold climbed 1.5%, settling at $5,266.22 after hitting a peak of $5,311.31. U.S. gold futures for February delivery also rose by 3.5%, reaching $5,260.40 per ounce. Analysts forecast that the Federal Reserve will maintain steady interest rates, which typically bodes well for gold.
Dollar Weakness and Market Sentiment
- The U.S. dollar hovered at four-year lows.
- President Trump’s dismissal of dollar weakness has increased the appeal of gold to international buyers.
- Market analysts predict that upcoming changes in Fed leadership may lead to lower interest rates.
Linh Tran, a senior market analyst at XS.com, noted that gold’s rise is reflective of a shift toward a more cautious global monetary stance. WisdomTree commodities strategist Nitesh Shah emphasized that potential candidates for the Fed leadership may be more accommodating to political pressures than current chair Jerome Powell.
Investment Trends and Retail Demand
Gold has gained over 20% since the beginning of the year, building on substantial gains from the previous year. Deutsche Bank analysts predict that gold could potentially reach $6,000 per ounce in 2026 due to sustained investment demand.
Despite high prices, retail demand remains strong, especially in markets like Shanghai and Hong Kong. Shah noted, “While high prices may affect jewellery demand, they could also encourage speculative investment from retail buyers.”
Other Precious Metals’ Performance
- Spot silver decreased by 0.4%, trading at $112.59 after reaching a record high of $117.69 earlier in the week.
- Spot platinum rose by 0.4%, reaching $2,651.90 an ounce, while palladium increased by 1.9% to $1,970.75.
For updates on market dynamics and precious metals, visit Filmogaz.com.
