Gold prices extended their sharp rally on January 29, briefly reaching a new record just below $5,600 an ounce as investors moved into safe-haven assets amid geopolitical tensions and economic uncertainty. Silver also rallied, nearing the $120 level, Reuters reports.
Spot gold climbed 2.6% to $5,538.69 an ounce by 03:49 GMT after earlier hitting an all-time high of $5,591.61. Analysts say concerns over rising US debt and fractures in global trade are driving demand.
“Rising U.S. debt and signs of a fragmented global trade system are driving investors into gold,” Marex analyst Edward Meir said.
Gold first crossed $5,000 on January 26 and has gained over 10% this week, boosted by safe-haven demand, central bank purchases and a weaker dollar. OCBC analysts noted that gold is now seen not just as a crisis or inflation hedge but as a reliable store of value offering diversification. Despite the rapid rise, fundamentals remain strong.
“Any dips are likely to be attractive buying opportunities,” IG analyst Tony Sycamore said.
Geopolitics and Policy Support Prices
Tensions between Washington and Tehran, the Federal Reserve’s decision to keep rates unchanged and continued inflation concerns also underpinned prices. Additional support came after a major crypto investment group announced plans to allocate part of its portfolio to physical gold, while buyers in Shanghai and Hong Kong continue to purchase bullion despite record prices.
Silver rose 0.6% to $117.30 an ounce after touching a record $119.34, with prices up more than 60% this year amid supply shortages and investor demand.
Platinum gained 1.6% to $2,739.48 an ounce, while palladium slipped 1.3% to $2,047.
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