Gold Price Surges to Record Highs Ahead of Fed
Gold price rallied as U.S. dollar weakness and safe-haven flows pushed bullion and silver higher, prompting traders to price more upside into metals.
KEY TAKEAWAYS
- Spot gold reached $5,277.01 per troy ounce, marking record highs.
- U.S. dollar weakness and safe-haven flows underpinned the metals rally.
- The Fed's expected hold and Powell remarks could determine the rally's next leg.
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On Jan. 28, 2026, the gold price climbed to record levels as a weak U.S. dollar and increased safe-haven demand pushed investors into bullion ahead of the Federal Reserve's policy meeting and decision.
Record Prices and Market Drivers
Spot gold reached $5,277.01 per troy ounce on Jan. 28, rising 1.9% that day, about 21.8% over the prior month, and roughly 91.2% year-on-year. The metal hit an intraday high of $5,311 late in the session, following earlier gains the day before. Year-to-date, gold had gained about 17.0% as of Jan. 28. The silver price rose above $116 per ounce on COMEX, with traders noting resistance near $117, support around $111, and interest in a move toward $120.
The rally reflected U.S. dollar weakness after the dollar index broke a long-term support level, driving flows into safe-haven assets. Trade tensions, heightened geopolitical risks, ongoing central-bank purchases, and sustained exchange-traded fund (ETF) inflows also supported the metals’ advance.
Federal Reserve Meeting and Outlook
The Federal Reserve was expected to hold the federal-funds rate in a 3.5%–3.75% range at its 2:00 p.m. ET announcement on Jan. 28, with Chair Jerome Powell scheduled to speak at 2:30 p.m. ET. Twelve of 19 Federal Open Market Committee members signaled support for at least one rate cut in 2026, and most economists forecast two reductions beginning around June.
Political and policy pressures have added a risk premium to bullion. A Department of Justice inquiry related to a $2.5 billion Fed building renovation led to subpoenas received on Jan. 11. The Supreme Court also heard arguments in a challenge to the attempted removal of a Fed governor, with legal observers expecting the governor to remain. President Trump is expected to name a successor when Powell’s term ends in May 2026, with names circulating including Kevin Hassett, Christopher Waller, Kevin Warsh, and Rick Rieder. These developments have intensified public debate over Fed independence amid calls for easier policy.
Major banks forecast gold could surpass $6,000 by year-end 2026 if dollar weakness persists and prospects for policy easing increase. An economic outlook projected spot gold near $5,045.82 at the end of the first quarter and about $5,312.36 a year later. Philadelphia Fed President Paulson said modest rate adjustments later in 2026 could follow if inflation moderates, the labor market stabilizes, and growth remains near 2.0%.
The Fed’s decision and Powell’s remarks will test whether the metals rally continues, with investors watching for any shift in the timing or scope of future easing that could affect demand for bullion and related funds.
