Last Updated on January 28, 2026 by Deon
The verdict is in: Gold has become more than just a “safe haven” — it’s a monster. XAU/USD: Five-day-old resistance line challenges buyers during a technical pullback Gold hits fresh high above $1,133 on Wednesday, January 28.The “yellow metal” hit an astonishing new all-time high of $5,311 per ounce earlier today and it has since moved off somewhat to around $5,280 but the action is extreme. With gold gaining 22% in the month and silver having surged 60% so far this year, we are seeing a tectonic plate shift of global wealth.
The President’s “Great” Weak Dollar
Taking many traditional economists by surprise in his ever keen ability to shock and awe, President Trump said he’s very pleased with the recent 4 year low that was set just this past week in U.S. Dollar strength. “No, I think that’s great,” he said, adding that a softer dollar is the “fair thing” to make businesses competitive around the world.And even if a weak dollar may be good for exports, it has fueled what markets refer to as a “debasement trade.” When the belief in the worth of a dollar diminishes, people take their money out of paper and into “hard” Gold.
Gold Performance: January 2026 Milestone
AssetMonthly Gain (Jan)Year-to-DateGold (XAU)22%22%Silver (XAG)28%60%US Dollar (DXY)-4.5%-10% – 12-mo
A ‘Changing of the Guard’ at the Fed
The market now sits in suspense for the Federal Reserve’s interest rate announcement. Though most anticipate rates to remain the same this afternoon, the real story is about leadership turnover on the horizon.President Trump has made clear he will soon name a new Fed Chair to succeed Jerome Powell, even candidly saying, “You’ll see rates come down a lot” when his choice is at the helm. This call for lower rates, along with a Justice Department investigation on current Chair Powell has created an atmosphere of political uncertainty which most often favors Gold.
Geopolitical Nervousness and the “Safe Haven” Tug
It’s not just about foreign policy.
Gold is also being buoyed by an increasingly anxious world:Trade Wars: Fresh tariff threats against South Korea and Canada have markets spooked.
Global Conflict: Continued tensions with Iran and unresolved Russia-Ukraine war are keeping”geopolitical risk premium” elevated.
Central Bank Hoarding: Central banks aren’t just buying Gold…they’re hoarding it as a strategic reserve asset, suggesting a move away from the dollar-dominated world order.
What’s Next for Your Portfolio?
For Gold, the path of least resistance seems to be higher and some big banks like Bank of America are now calling for $6,000 an ounce in the spring. Though remain vigilant for the Fed announcement at 19:00 GMT today. In the event Chair Powell sounds more “hawkish” (aggressive) than expected, we could see some profit-taking over the short term — but in this market, Gold reigns supreme.
