Gold Surpasses $5,400 Amid Fed’s Steady Rates

Gold hit a record high of $5,400 per ounce on January 29, 2026, driven by Federal Reserve policies and geopolitical tensions related to US warnings to Iran.

The surge underscores investors’ safe-haven demand amid economic uncertainties, impacting traditional market assets while leaving cryptocurrency sectors largely unaffected.

Gold reached a record high of $5,400 per ounce on 29 January 2026. This upswing was fueled by the US Federal Reserve’s decision to maintain interest rates, alongside geopolitical issues and economic uncertainties.

Jerome Powell noted the improved growth outlook, contributing to favorable conditions for gold. “If you look at the latest data since the last meeting, it’s clear that the outlook for growth has improved markedly,” he said, adding that inflation is nearing expectations and labor markets show stabilization signs amid low job gains and unemployment trends. Meanwhile, Donald Trump’s warnings to Iran over nuclear issues elevated geopolitical risks, further driving the gold demand. Source 1

The surge in gold prices affected both financial and commodity markets, with all-time highs showing increased investor interest in safe assets. This shift indicates preference over traditional stocks during uncertain times.

Central banks responded by accumulating gold reserves, reinforcing its market position. Stable Fed rates reduce gold’s opportunity cost, supporting its value as a safe-haven asset. Read news and articles with this Android app

Markets are preparing for limited rate cuts through 2026, impacting gold’s opportunity costs minimally. Strategic investments in gold assets continue to increase amidst ongoing economic and geopolitical uncertainties.

Historical trends demonstrate similar spikes in gold prices during geopolitical tensions and economic slowdown, reinforcing its status as a preferred safe haven. Current data shows sustained gold accumulation by central banks.