Gold rose to a record above $5,500 an ounce, continuing a sharp rally driven by a weaker U.S. dollar, a flight from government bonds and rising geopolitical tensions. | Photo credit: iStockphoto
Bullion rose as much as 3.2% in early trading, building on a 4.6% jump the previous session – its biggest single-day gain since the height of the Covid-19 pandemic in March 2020. Precious metals have risen dramatically this year as heightened geopolitical tensions and concerns over the independence of the Federal Reserve have supported the demeaning trade. Silver also reached a record high on Thursday.
Fed Watch Mode
Traders looked beyond the Fed’s widely expected decision on Wednesday to leave interest rates unchanged. With a new monetary chief expected to replace Jerome Powell later this year, Rick Rieder of BlackRock Inc. – an advocate for more aggressive rate cuts – has emerged as one of the leading candidates. Traders are raising expectations for an accommodative policy change, which would benefit unprofitable precious metals.
Global bond jitters
A recent sell-off in Japan’s bond market is the latest example of worries about high budget spending, while speculation that the US could intervene to support the yen has weighed on the dollar, making precious metals cheaper for most buyers.
The dollar debate
US President Donald Trump said this week he was not concerned about a decline in the dollar that has dragged the world’s main reserve currency to its weakest level in almost four years, although Treasury Secretary Scott Bessent later said the government supports a stronger currency.
Policy shockwaves
The White House’s actions – threats to annex Greenland and military intervention in Venezuela – have also roiled markets in recent weeks. The US leader has pledged to raise tariffs on South Korean goods and impose 100% tariffs on Canada if Ottawa reaches a trade deal with China.
Gold rose 0.8%% to $5,461.98.21 an ounce as of 8:02 a.m. in Singapore, after previously hitting a record high of $5,588.71. Silver rose 0.9% to $117,119 an ounce. Platinum and palladium both fell. The Bloomberg Dollar Spot Index fell 0.2%.
More stories like this are available at bloomberg.com
Published on January 29, 2026
#Gold #hits #record #dollar #weakness #fuels #rally