Gold Price Surges Beyond $5,550 an Ounce
Gold reached a new all‑time high early on Thursday, 29 January 2026, trading above $5,550 per ounce on the CME. The rise followed a nearly 2 % jump from the previous close of $5,301.60, a level that itself marked the 52‑week high for the metal. The record rally was fueled by a combination of a weaker U.S. dollar, sustained demand in emerging‑market jewelry sectors, and continued bullish sentiment among institutional investors.
Key Market Drivers
| Factor | Impact on Gold |
|---|---|
| Dollar Weakness | Gold is priced in USD; a falling dollar makes it cheaper for holders of other currencies, lifting demand. |
| Federal Reserve Policy Outlook | BOCHK analysts project a higher probability of a mid‑2026 rate cut. Even though the Fed has left rates unchanged this month, expectations of future easing support gold’s long‑term uptrend while adding short‑term volatility. |
| Demand in Pakistan and India | Pakistan’s gold price per tola hit Rs 572,862, up Rs 21,200 from the prior day, while India’s jewellery volume fell 24 % in 2025 because record prices curbed discretionary purchases. The contrast illustrates that while retail demand may ebb under price pressure, overall market activity remains robust. |
| Corporate Earnings and Dividend Signals | Endeavour Mining announced a dividend hike in line with higher output and prices, signalling confidence in the sector and reinforcing the narrative of a strong gold economy. |
| Geopolitical Tension and Crisis‑Fear | German media reported that fears of a new crisis were pushing gold and silver to record levels, a classic flight‑to‑quality dynamic. |
Price Breaks and Momentum
- $5,000 Threshold – Two separate reports from Resource‑Capital.ch confirmed that the price had broken the $5,000 mark.
- $5,500 Threshold – German outlets (Spiegel.de, Boerse‑Online.de, Sharedeals.de) noted the breakthrough of the $5,500 barrier, describing it as a “magical” or “next critical” level.
- $5,550 Peak – The most recent data from RTT News and Aastocks.com place the intraday high at $5,549–$5,550, giving the metal a fresh high for the year.
Global Context
- Asia – Tokyo stocks closed higher amid a weaker yen and surging gold, indicating that a soft yen continues to benefit the metal.
- Europe – German and French news outlets highlighted the record price and the sustained rally, underscoring the broad‑based appeal of gold across developed markets.
Outlook
Analysts remain cautiously optimistic. The consensus is that gold will likely continue to climb in the medium to long term, especially if the dollar maintains weakness and the Fed keeps its policy easing trajectory. However, heightened volatility is expected in the near term as market participants adjust to the new price regime.
The 52‑week low of $2,780.90, set on 2 February 2025, is now more than double the current price, highlighting the dramatic turnaround the metal has experienced over the past year. If the recent momentum holds, gold may set yet another record, further cementing its status as a hedge against currency depreciation and geopolitical uncertainty.
