Gold Soars to Historic $5,300+ Peak on Trump’s Dollar Stance

Gold prices shattered yet another all-time high, climbing above $5,300 per ounce on January 28, 2026, as investors piled into the precious metal amid a sharply weaker US dollar and mounting global uncertainties. Spot gold rose as much as 2.5% during the session, extending Tuesday’s explosive 3.4% gain—the largest single-day advance since April. The rally has propelled gold up roughly 22% year-to-date, with the metal breaching the $5,000 barrier earlier this week for the first time ever.

President Donald Trump’s latest comments played a pivotal role in accelerating the move. Speaking to reporters in Iowa, Trump downplayed concerns over the dollar’s slide to its weakest level in nearly four years, stating he was “not worried” and describing the currency’s performance as “great.” The Bloomberg Dollar Spot Index tumbled 1.1% on Tuesday—its steepest daily drop since April—making gold more attractive to buyers holding other currencies. Combined with persistent geopolitical tensions, heavy fiscal spending fears (evident in the Japanese bond market rout), and speculation of US intervention to prop up the yen, the dollar’s decline has supercharged demand for bullion as a hedge.

Market dynamics have further amplified the rally. Expectations are growing for a dovish turn at the Federal Reserve, fueled by reports that BlackRock CIO Rick Rieder could replace Jerome Powell as chair. Rieder has long favored aggressive rate cuts, a stance that typically supports non-yielding assets like gold. Retail investors, alongside institutional flows, have driven rapid allocations into precious metals, according to analysts at Standard Chartered. Silver joined the surge, climbing as much as 3.6% and hovering near its recent record above $117 an ounce, though gains later moderated amid margin hikes on Comex futures and volatility controls in China.

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The broader backdrop includes renewed market unease over the Trump administration’s foreign policy moves—threats involving Greenland, Venezuela, tariffs on South Korea and Canada—and repeated criticism of the Fed’s independence. Meanwhile, Tether Holdings has emerged as a surprising heavyweight, holding around 140 tons of gold reserves, making it one of the largest non-bank, non-state owners of bullion globally. In China, authorities in Shenzhen launched a task force to monitor a troubled gold-trading platform after investor withdrawal issues triggered protests.

As of late London trading, gold stood at $5,265.14 an ounce, up 1.6%, while silver traded near $112.19. With upside risks still in play barring short-term pullbacks, analysts warn the rally could extend further if dollar weakness and safe-haven flows persist.

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