Gold surged to a record above $5,500 an ounce, extending a sharp rally driven by a weaker US dollar, a flight from sovereign bonds and rising geopolitical tensions. | Photo Credit: iStockphoto
Gold surged to an all-time high above $5,500 an ounce, extending a breakneck rally fueled by US dollar weakness and a wider flight from sovereign bonds and currencies.
Bullion jumped as much as 3.2% in early trading, building on a 4.6% leap in the previous session – its biggest one-day gain since the height of the Covid-19 pandemic in March 2020. Precious metals have risen dramatically this year on heightened geopolitical tensions and worries about the independence of the Federal Reserve, which have supported the debasement trade. Silver also hit an all-time high on Thursday.
Fed Watch Mode
Traders looked beyond the Fed’s widely expected decision Wednesday to leave interest rates unchanged. With a new monetary chief expected to take over from Jerome Powell later this year, BlackRock Inc.’s Rick Rieder — an advocate for more aggressive rate cuts — has emerged as a top contender. Traders are ramping up bets on a dovish policy shift, which would benefit non-yielding precious metals.
Global Bond Jitters
A recent selloff in the Japanese bond market is the latest example of concerns over heavy fiscal spending, while speculation the US may intervene to support the yen has weighed on the dollar, making precious metals cheaper for most buyers.
Dollar Debate
US President Donald Trump said this week he was not concerned about a drop in the dollar that dragged the world’s premier reserve currency to its weakest level in nearly four years, although Treasury Secretary Scott Bessent later said the administration supports a stronger currency.
Policy Shockwaves
The White House’s actions — threats to annex Greenland and military intervention in Venezuela — have also unsettled markets in recent weeks. The US leader has pledged to hike tariffs on South Korean goods and impose 100% levies 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 am in Singapore, having earlier hit an all-time high of $5,588.71. Silver climbed 0.9.% to $117.119 an ounce. Platinum and palladium both fell. The Bloomberg Dollar Spot Index was down 0.2%.
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Published on January 29, 2026