Gold Aims for $5,600, Silver Breaks $120, Safe Havens Sell Off Strongly
Gold rallied on Thursday (January 29th), moving slightly below $5,600/ounce, as investors sought safe havens amid geopolitical tensions and economic concerns.
The spot gold price rose 2.7% to $5,546.29/ounce at 07:52 GMT, after hitting an intraday record of $5,594.82. This marked the ninth consecutive day that gold had set a new record. US gold futures for February also jumped 4.5% to $5,539.20, after hitting a new peak of $5,626.80.
The main trigger came from the market's "defensive mode": geopolitical tensions, coupled with the US political situation, have made market participants nervous. The focus has been on the issue of the Fed's independence amid the Trump administration's investigation into Fed Chair Jerome Powell, the issue of dismissing Fed Chair Lisa Cook, and the planned appointment of Powell's replacement in May.
On the other hand, concerns about ballooning US debt and an increasingly fractured global trading system have fueled the rush to gold.
The combination of safe-haven demand, central bank buying, and a weakening dollar has seen gold rise more than 10% this week—and by about 27% through 2026.
Tensions also escalated after Trump urged Iran to reach a nuclear deal and warned that any further attacks would be far more severe, while Tehran responded with threats of retaliation. On the monetary front, the Fed held interest rates on hold on Wednesday as expected, but Powell confirmed that December inflation remained well above its 2% target—remaining high uncertainty.
In Asia, high gold prices sparked a surge in activity at precious metals traders in Shanghai and Hong Kong, with some investors still betting on further price increases.
Silver also exploded. Spot silver briefly reached a record $120.45/ounce before recovering to around $118.25/ounce (+1.4%). Silver benefited from investors seeking cheaper alternatives to gold, coupled with supply issues and momentum buying. However, analysts warn that once the euphoria subsides, silver could experience a sharp correction—although its fundamentals are still considered quite strong.
Meanwhile, platinum rose 2.8% to $2,770.49/ounce and palladium rose 1.6% to $2,107.37/ounce, adding to the overall precious metals rally. (yds)
Source: Newsmaker.id
