From
10m ago
Introduction: Weak dollar drives gold over $5,500 an ounce
Good morning and welcome to our rolling coverage of business, the financial markets and the world economy.
The surge in the gold price is showing no sign of abating, as bullion continues to soar.
Gold has jumped over the $5,500 an ounce level this morning, just three days after hitting $5,000 for the first time, taking its gains so far this year to almost 30% (!).
It powered higher as investors continue to rush into safe haven assets, looking for protection against geopolitical and economic uncertainty.
Precious metals are also benefiting from the weaker dollar, which has lurched lower after president Trump indicated this week he was comfortable with the currency’s year‑to‑date softness. That only…
From
10m ago
Introduction: Weak dollar drives gold over $5,500 an ounce
Good morning and welcome to our rolling coverage of business, the financial markets and the world economy.
The surge in the gold price is showing no sign of abating, as bullion continues to soar.
Gold has jumped over the $5,500 an ounce level this morning, just three days after hitting $5,000 for the first time, taking its gains so far this year to almost 30% (!).
It powered higher as investors continue to rush into safe haven assets, looking for protection against geopolitical and economic uncertainty.
Precious metals are also benefiting from the weaker dollar, which has lurched lower after president Trump indicated this week he was comfortable with the currency’s year‑to‑date softness. That only encouraged fears of monetary debasement, boosting gold’s attractiveness.
As Chris Beauchamp, Chief Market Analyst at IG, explains:
“That sound you hear is that of 2026 gold targets being furiously revised higher, as the price keeps climbing, and given renewed impetus by Trump’s comments on the dollar. This will have fans of the debasement trade cheering in their seats, as it reinforces their thesis.
Each time precious seem at risk of running out of bullish momentum, something comes along to rescue it. So long as international investors keep dumping the dollar, the future for gold looks bright indeed.”
The gold price over the last quarter Photograph: LSEG
Concerns around the independence of America’s central bank are also lifting gold.
Although the US Federal Reserve resisted pressure from Trump and held interest rates last night, it may cut rates once a new chair has been installed to replace Jerome Powell later this year. That could weaken the dollar further, and lift inflation – two conditions which are good for the gold price.
The agenda
10am GMT: Eurozone consumer/business confidence report
1.30pm GMT: US trade report for November
1.30pm GMT: US initial jobless claims report
3pm GMT: US factory orders data for November
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The rise in precious metals prices is “breathtaking and profoundly scary”, warns Robin Brooks, senior fellow at Brookings Institute.
He writes:
The rise in gold is part of something much bigger… all precious metals prices are going through the roof and gold is a laggard compared to silver and platinum.
At the same time, we’re seeing government bond markets in high-debt countries like Japan under severe pressure, even as there’s a flight to safety into countries with low debt like Sweden, Norway and Switzerland. Gold is therefore a symptom of something much bigger. We’re at the start of a global debt crisis, with markets increasingly fearful governments will attempt to inflate away out-of-control debt. Gold is just one of many assets that are getting a “safe haven” bid as part of this phenomenon.
Dollar weakness is supercharging the rise in gold. It was only on Sunday night that we went above $5,000 and today we’re already above $5,200. Dollar weakness is adding fuel to the fire for the crazy rise in precious metals...https://t.co/u358ES9y2d pic.twitter.com/jzQ3c7vqCk
— Robin Brooks (@robin_j_brooks) January 28, 2026
Introduction: Weak dollar drives gold over $5,500 an ounce
Good morning and welcome to our rolling coverage of business, the financial markets and the world economy.
The surge in the gold price is showing no sign of abating, as bullion continues to soar.
Gold has jumped over the $5,500 an ounce level this morning, just three days after hitting $5,000 for the first time, taking its gains so far this year to almost 30% (!).
It powered higher as investors continue to rush into safe haven assets, looking for protection against geopolitical and economic uncertainty.
Precious metals are also benefiting from the weaker dollar, which has lurched lower after president Trump indicated this week he was comfortable with the currency’s year‑to‑date softness. That only encouraged fears of monetary debasement, boosting gold’s attractiveness.
As Chris Beauchamp, Chief Market Analyst at IG, explains:
“That sound you hear is that of 2026 gold targets being furiously revised higher, as the price keeps climbing, and given renewed impetus by Trump’s comments on the dollar. This will have fans of the debasement trade cheering in their seats, as it reinforces their thesis.
Each time precious seem at risk of running out of bullish momentum, something comes along to rescue it. So long as international investors keep dumping the dollar, the future for gold looks bright indeed.”
The gold price over the last quarter Photograph: LSEG
Concerns around the independence of America’s central bank are also lifting gold.
Although the US Federal Reserve resisted pressure from Trump and held interest rates last night, it may cut rates once a new chair has been installed to replace Jerome Powell later this year. That could weaken the dollar further, and lift inflation – two conditions which are good for the gold price.
The agenda
10am GMT: Eurozone consumer/business confidence report
1.30pm GMT: US trade report for November
1.30pm GMT: US initial jobless claims report
3pm GMT: US factory orders data for November