 "Gold surges past $4,800 as Trump’s Greenland push rattles markets, fuels safe-haven rush")
Gold’s relentless rally gathered further momentum on Wednesday, with prices breaking past the $5,200-per-ounce mark for the first time, as a plunging U.S. dollar, geopolitical uncertainty, and expectations of prolonged monetary easing boosted demand for the safe-haven metal.
Spot gold rose as much as 1.8 per cent to hit a record high of $5,285.35 an ounce before easing slightly to around $5,280, extending gains of over 20 per cent so far in 2026. U.S. gold futures for February delivery surged nearly 4 per cent to about $5,275 an ounce.
The latest surge comes as the U.S. dollar struggles near four-year lows, weighed down by concerns over Federal Reserve independence and political pressure on monetary policy.
President Donald Trump’s remarks brushing off the dollar’s weakness have further accelerated selling in the greenback, adding to gold’s appeal. Adding to bullish sentiment, Deutsche Bank said on Tuesday that gold could climb to $6,000 per ounce in 2026, citing persistent investment demand as central banks and investors continue to increase allocations to non-dollar and tangible assets.
In alternative scenarios, the bank said prices could even reach $6,900 an ounce, in line with gold’s outsized performance over the past two years.
Other major investment banks have also turned increasingly optimistic. Societe Generale expects gold to reach $6,000 per ounce by the end of 2026, warning that its forecast may prove conservative.
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View AllMorgan Stanley has outlined a bull-case target of $5,700 for the second half of 2026, while Goldman Sachs sees upside risks to its $5,400 forecast for December 2026. Citi Research recently raised its near-term price target to $5,000, while Bank of America lifted its 2026 outlook to $5,000 an ounce.
Gold’s rally has been further supported by mounting economic uncertainty in the U.S. Data released on Tuesday showed consumer confidence slumped to its lowest level in more than 11 years in January, reflecting anxiety over a cooling labour market and persistent price pressures.
Markets are now focused on the outcome of the U.S. Federal Reserve’s policy meeting later in the day. While the Fed is widely expected to keep interest rates unchanged, investors are closely watching Chair Jerome Powell’s remarks for signals on the future path of policy amid growing political scrutiny.
Elsewhere in precious metals, silver rose 0.9 per cent to about $114 an ounce, after touching a record high of $117.69 earlier this week and gaining nearly 60 per cent so far this year. Platinum climbed 1.7 per cent to around $2,686 an ounce.
With central bank buying, geopolitical risks, and dollar weakness showing little sign of abating, analysts say gold’s bull run may still have room to run despite its already historic surge.