Storm of Uncertainty Lifts Gold to New Heights
Gold prices continued to rally, approaching $5,400/oz for the first time on Wednesday (January 28th). The "flight to safety" sentiment remains dominant, fueled by a mix of economic and geopolitical uncertainty and unclear US policy direction.
At the time of writing, XAU/USD was hovering around $5,376 per ounce, hitting a new high of $5,391 per ounce, while the February US gold futures contract closed at $5,303.60.
According to Peter Grant (Zaner Metals), the current precious metal rally feels like it's "moving with its own momentum." He believes gold has entered overbought territory and is vulnerable to corrections, but any dips are quickly bought, so the next target is seen as $5,400.
On the policy front, the Fed held interest rates at 3.50%–3.75% and emphasized that its next move is highly data-dependent—without providing a clear timetable for the next cut. This decision was also marked by a 10–2 vote, with Christopher Waller and Stephen Miran dissenting and favoring a 25 bps cut.
Tai Wong (an independent metals trader) assessed that the market reaction following the Fed's statement was more of a short-term "bump-and-bump" scenario, as there were no signals that the central bank was in any rush to take new action. On the other hand, Powell stated that December inflation was likely still well above the 2% target, while Trump said he would soon announce his choice to replace Powell.
Beyond macro factors, institutional interest also added to the narrative. Tether CEO Paolo Ardoino said the company plans to invest 10%–15% of its investment portfolio in physical gold, adding to its existing gold exposure.
Source: Newsmaker.id
