Gold Surges Past $5,200 as US Dollar Hits Four-Year Low

Wednesday — Gold prices extended their strong rally, breaking past $5,200 per ounce for the first time, as the US dollar slipped to a near four-year low and investor confidence weakened.

Gold Hits New Record High

Spot gold rose 1.1% to $5,243.58 per ounce by early Asian trading. Prices earlier touched a record high of $5,247.21. Gold has now gained more than 20% since the start of the year.

US gold futures for February delivery jumped 3.1% to $5,237.70 per ounce, reflecting strong demand across markets.

Dollar Weakness Fuels Gold Rally

Analysts said the rally is closely tied to the dollar’s sharp decline. The US currency struggled near a four-year low, triggering heavy selling.

Kelvin Wong, a senior market analyst at OANDA, said gold’s surge reflects its strong inverse relationship with the dollar. He added that comments from President Donald Trump signaled broad support within the White House for a weaker dollar.

Confidence in the Dollar Under Pressure

The dollar faced what analysts described as a crisis of confidence. Trump said the dollar’s value was “great” when asked about its recent decline, which added to market uncertainty.

At the same time, US consumer confidence fell to its lowest level in more than 11 years, driven by concerns over a weak labor market and high prices.

Fed Outlook and Rate Expectations

Trump also said he would soon announce his choice for the next Federal Reserve chair. He predicted that interest rates would fall once the new leadership takes over.

Markets widely expect the Federal Reserve to keep rates unchanged at its January policy meeting, which is currently underway.

Outlook for Gold and Silver

Wong noted that near-term resistance for gold could appear around $5,240 per ounce.

Meanwhile, Deutsche Bank said gold could rise to $6,000 per ounce in 2026, citing strong investment demand and growing interest in non-dollar assets.

Spot silver climbed 1.9% to $115.11 per ounce after reaching a record $117.69 earlier this week. Silver prices have surged nearly 60% this year.