Gold's blistering rally continues past $5,200 as dollar plunges to 4-year low
Senior market analyst says gold's rise is due to very strong indirect correlation with the dollar
January 28, 2026
- Gold sets record high at $5,224.95 per ounce.
- US dollar sinks to four-year lows.
- Trump brushes off dollar weakness, calling it "great".
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
Spot gold jumped 1.1% to $5,243.58 per ounce, as of 0314 GMT, after scaling a record high of $5,247.21 earlier, up more than 20% since the start of the year
US gold futures for February delivery surged 3.1% to $5,237.70 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 US 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 US 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.
US 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 US 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.
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 1.9% at $115.11 an ounce, after hitting a record high of $117.69 on Monday. The white metal has already jumped almost 60% so far this year.
