Gold crosses $5,200 an ounce for first time amid geopolitical, policy uncertainty

Gold hits a record $5,200 an ounce as investors seek safety amidst US-China tensions, Trump tariffs, and Fed policy uncertainty. Deutsche Bank and UBS Global Research predict further gains this year.

Gold prices rose to an all-time high on Wednesday (January 28), passing $5,200 an ounce, as investors turned to safe-haven assets amid ongoing geopolitical tensions and policy uncertainty.

Gold has gained more than 18% so far this year, extending last year’s rally. The move reflected persistent concerns over global trade, fiscal risks in the US, and expectations that interest rates could ease later in the year.

Market uneasiness intensified after US President Donald Trump said Washington plans to impose new tariffs on South Korean imports, while the risk of a partial US government shutdown ahead of the January 30 funding deadline also weighed on sentiment.

Investors are closely tracking the US Federal Reserve’s policy meeting this week. While rates are expected to remain unchanged, markets are focused on Fed Chair Jerome Powell’s commentary for cues on the outlook for monetary easing and the central bank’s policy stance.

Structural factors continue to support gold. Central bank purchasing has remained strong as countries diversify reserves, while geopolitical risks have sustained investor demand. “Rallies typically end when the factors that drive investors into gold fade, and that is not what we are seeing,” said Michael Widmer, commodities strategist at Bank of America.

Rising participation has accompanied the price surge. CME Group said its metals complex recorded a single-day volume of more than 3.3 million contracts on Jan 26, the highest on record.

Global banks have turned more constructive on gold’s outlook. Deutsche Bank and Societe Generale expect prices to reach $6,000 an ounce by the year end.

UBS Global Research also sees further downside in the near term.

“We expect new highs over the next pair of quarters before prices stabilize at higher levels later in the year,” said Joni Teves, Precious Metals Strategist at UBS Global Research, adding that gold could average around $5,200 an ounce in 2026.

In India, higher gold prices have lifted household wealth valuations but are unlikely to translate into a broad-based boost in consumption. “The gold-related wealth impact is less effective in supporting household consumption, as Indian households generally prefer not to sell gold even when prices are high,” said Tanvee Gupta Jain, Chief India Economist at UBS Securities.

(Bloomberg) —

Gold hits a record high above $5,200 an ounce, extending a breakneck rally fueled by US dollar weakness and a flight from sovereign bonds and currencies.

Article content

Bullion rose as much as 0.4% on Wednesday, having jumped 3.4% in the previous session — its largest one-day gain since April. President Donald Trump said he was not concerned about a drop in the value of the dollar that has dragged the world’s premier reserve currency to its weakest level in nearly four years.

That decline, combined with elevated geopolitical risks and investor flight from currencies and Treasuries, has sparked a wave of investment demand in precious metals.Gold has gained about 20% since the beginning of the year, smashing through $5,000 an ounce for the first time this week. In the same period, silver has surged more than 50%.

A massive selloff in the Japanese bond market is the latest example of concerns over heavy fiscal spending, while speculation the US might intervene to support the yen has weighed on the dollar, making precious metals cheaper for most buyers. A gauge of the US currency fell 1.1% on Tuesday, its biggest one-day drop since April.

Trump told reporters in Iowa on Tuesday that the dollar was “doing great” and he expected currency values to fluctuate. “No, I think it’s great,” he told reporters when asked if he was worried about losses in the currency.

Article content

The Trump administration’s actions — threats to annex Greenland and military intervention in Venezuela, as well as renewed attacks on the Federal Reserve’s independence — have also unsettled markets in recent weeks. The US leader has threatened to hike tariffs on South Korean products and to impose 100% levies on Canada if Ottawa reaches a trade deal with China.

Meanwhile, bond traders are ramping up bets on a dovish policy shift at the Fed on the expectations that BlackRock Inc. Chief Investment Officer Rick Rieder will replace Jerome Powell as chair. The Wall Street veteran has advocated for an aggressive approach to lower lending costs. A lower rate environment benefits precious metals, which don’t pay interest.

Expectations of a more dovish and less independent Fed, as well as geopolitical risks, “are probably driving more rapid allocations to gold, led by retail investors,” Suki Cooper, global head of commodities research at Standard Chartered Plc, said in a note. “Barring short-term corrections, we continue to see further upside risk.”

Article content

Gold rose 0.2% to $5,190.17 an ounce as of 9:19 a.m. in Singapore, having previously hit a peak of $5,202.51. Silver climbed 1% to $113.14. Platinum and Palladium advanced, while the Bloomberg Dollar Spot Index was up 0.2% on Wednesday but down 1.4% for the week.

On Wednesday, January 28, 2026, gold surged past the $5,200 per ounce landmark for the first time. This historic rally has been fueled by a combination of offensive geopolitical maneuvers and domestic policy shifts in the United States.

Trade War Escalation:

New threats from the Trump administration to impose a 100% tariff on Canada and additional tariffs on South Korean imports have elevated global trade anxiety.
Geopolitical Flashpoints: Renewed tensions over Greenland, a second naval armada reported headed towards Iran, and ongoing conflicts in Eastern Europe and the Middle East have accelerated the flight to safe-haven assets.
Policy & Fiscal Uncertainty: Concerns regarding the independence of the Federal Reserve— following subpoenas issued against Jerome Powell—and a looming U.S. The government shutdown on January 30 has eroded confidence in the dollar.
Dollar Weakness: The U.S. The dollar index recently slipped to a four-month low, making bullion cheaper for international buyers and further pushing spot prices.

For more such information, connect with us today: : www.globalmediaa.com