Gold prices extended gains, rising more than 3 percent as the U.S. dollar slid to a near four-year low amid lingering geopolitical concerns and ahead of the U.S. Federal Reserve’s monetary policy decision.
Spot gold climbed 0.6 percent to $5,219.97 per ounce by 0153 GMT, after touching a record high of $5,224.95 earlier in the session. The metal is now up more than 20 percent since the start of the year.
Meanwhile, U.S. gold futures for February delivery surged 2.6 percent to $5,216.80 per ounce.
Analysts attributed the rally largely to weakness in the dollar. Kelvin Wong, senior market analyst at OANDA, said gold’s rise reflects its strong inverse correlation with the greenback.
“Yesterday’s price rise in the U.S. session was triggered by President Trump’s remarks about the dollar, which implied a broad-based consensus within the White House to prefer a weaker currency going forward,” Wong said.
The dollar has been facing what analysts describe as a “crisis of confidence,” hovering near four-year lows and intensifying selling pressure after President Donald Trump said the currency’s value is “great” when asked whether it had fallen too much.
Adding to market uncertainty, U.S. consumer confidence dropped to its lowest level in more than 11-and-a-half years in January, reflecting growing concerns over a weakening labour market and persistently high prices.
Trump also said he would soon announce his pick for chair of the U.S. central bank and predicted that interest rates would decline once the new leadership takes over.
The Federal Reserve, however, is widely expected to keep interest rates unchanged at its January policy meeting, which is currently underway.
Wong noted that near-term resistance for gold could emerge around $5,240 per ounce. Separately, Deutsche Bank said on Tuesday that gold prices could climb to $6,000 per ounce in 2026, citing sustained investment demand as central banks and investors increase allocations to non-dollar and tangible assets.
Other precious metals also advanced. Spot silver rose 0.6 percent to $113.63 per ounce after hitting a record high of $117.69 on Monday, and is already up nearly 60 percent so far this year.
Spot platinum gained 1.5 percent to $2,679.15 per ounce after touching a record $2,918.80 a day earlier, while palladium edged up 0.9 percent to $1,951.93 per ounce.
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