Gold continues its meteoric rise, exceeding $5,200

Gold surpassed $5,200 for the first time on Wednesday, after rising more than 3 percent on Tuesday, with the dollar falling to its lowest level in almost four years amid ongoing geopolitical concerns, ahead of the Federal Reserve’s monetary policy decision.

The spot gold price jumped 1.1 percent to $5,243.58 per ounce, by 03:14 GMT, after hitting a new record high of $5,247.21 earlier, rising more than 20 percent since the beginning of the year.

US gold futures for February delivery rose 3.1 percent to $5,237.70 per ounce.

Kelvin Wong, chief market analyst at Oanda, said: “Gold’s rise is due to the very strong indirect link between it and the dollar, and the rise in the price of gold yesterday in the US trading session was a result of Trump’s statement in response to a passing question about the dollar, which hinted at the existence of a broad consensus within the White House on the need to weaken the dollar in the future.”

The US dollar was suffering from a “crisis of confidence” as it fell near its lowest levels in four years, which exacerbated the selling of the dollar, after President Donald Trump described the value of the currency as “great” when asked if he thought it had fallen too much.

Meanwhile, US consumer confidence fell to its lowest level in more than 11 and a half years in January, amid growing concerns about a stagnant labor market and rising prices.

Trump added that he would soon announce his nominee to head the US Central Bank, and he expected interest rates to decline as soon as the new president took office.

The Federal Reserve is widely expected to keep interest rates steady at its current monetary policy meeting in January.

Wong added that gold’s near-term resistance level could be around $5,240 per ounce.

Deutsche Bank said on Tuesday that the price of gold could rise to $6,000 per ounce in 2026, indicating continued investment demand as central banks and investors increase their allocations to non-dollar and tangible assets.

The spot price of silver rose by 1.9 percent to $115.11 per ounce, after hitting a record level of $117.69 on Monday. The price of the white metal has risen by nearly 60 percent this year.

The spot platinum price increased by 2 percent to reach $2,692.60 per ounce after hitting a record high of $2,918.80 on Monday, while the price of palladium rose by 1.4 percent to reach $1,961.68.