Gold hits fresh record above $5,300 as forecasts stretch into five figures
LONDON (January 28) Gold has continued its extraordinary rally, climbing above $5,300 per ounce as investors rush into precious metals amid persistent geopolitical and policy uncertainty.
What was once a $6,000 target for late 2026 has rapidly escalated into talk of $10,000 gold, a sign that market psychology is now doing most of the driving. When numbers start getting thrown around this freely, it usually signals a market entering a more dangerous phase.
Signs of excess have already appeared elsewhere in the metals space. Silver saw what looked like a blow-off top on Monday, plunging 13% from its $117 peak before stabilising. After recovering through Tuesday and overnight trade, silver was back around $112, highlighting just how violent swings have become.
Gold extended its rally again on Wednesday as safe-haven demand stayed strong and the US dollar remained under pressure. Investors remained cautious ahead of the conclusion of the Federal Reserve’s policy meeting later in the day, keeping defensive positioning firmly in place.
Geopolitical tension continues to drive demand, with US President Donald Trump saying a second armada was heading towards Iran and adding that he hoped Tehran would accept a deal with Washington.
The comments followed a year already marked by elevated uncertainty, including a US incursion in Venezuela and an ongoing dispute over Greenland, both of which have kept markets on edge.
Dollar weakness has added further fuel, with the greenback sliding to near four-year lows this week after Trump signalled he was unconcerned by a weaker currency, prompting deeper selling pressure, while gold is now up roughly 20% so far in 2026 after already delivering strong gains last year.
Attention remains fixed on the Federal Reserve, which is widely expected to keep interest rates unchanged at 3.75%.
Markets will be watching closely for any signals from Chair Jerome Powell, particularly as political pressure on the central bank intensifies.
Trump has said he is close to naming Powell’s eventual successor and has repeated claims that rates will fall under new leadership, reviving concerns over the Fed’s independence.
In this environment, gold is no longer trading on neat models or tidy targets. It is trading on uncertainty, volatility and a growing loss of confidence in policy stability, conditions that continue to favour bullion despite the risks that come with such rapid gains.
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