Gold jumped nearly 2 percent to touch a new peak above $5,550 an ounce on Thursday, prompting some experts to raise yellow flags about what comes next.
Spot gold traded up 1.9 percent at $5,518.27 an ounce, after having touched a new peak of $5,595.44 earlier. U.S. gold futures were up 3.9 percent at $5,547.71.
The dollar weakened, halting Wednesday’s bounce, as concerns over the Federal Reserve’s independence, combined with ongoing fiscal pressures and tariff worries overshadowed comments from U.S. Treasury secretary Scott Bessent that Washington was still pursuing a “strong dollar policy”.
The metal’s stellar run has also been aided by rising tensions between the United States and Iran.
U.S. President Donald Trump has warned Iran that “time is running out” to negotiate a deal on its nuclear program following the steady build-up of U.S. military forces in the Gulf.
In response, Iran’s Foreign Minister Abbas Araghchi said the country’s armed forces were ready “with their fingers on the trigger” to “immediately and powerfully respond” to any aggression by land or sea.
Investor reaction to the Federal Reserve’s interest-rate decision was muted and market participants are now waiting to see whether the federal Government will be forced to shut down this Friday, once again, over DHS funding.
Market Analysis
Gold Extends Record Rally On Dollar Weakness
2026-01-29 09:45:22
