Gold rockets past US$5,500 as global uncertainties mount

Bengaluru – Gold extended its blistering rally on Jan 29, rocketing past US$5,500 per ounce for the first time as investors sought safety amid deepening economic and geopolitical uncertainty.

Spot gold was up 4 per cent to US$5,555.10 an ounce as at 7.55am Singapore time. Prices broke the US$5,000 mark for the first time on Jan 26 and have gained more than US$500 over four sessions.

Geopolitical tensions persisted after US President Donald Trump urged Iran on Jan 28 to come to the table and make a deal on nuclear weapons, warning that the next US attack would be far worse. Tehran responded by threatening to strike back against the US, Israel and those who supported them.

On the policy front, the US Federal Reserve decided to leave rates unchanged on Jan 28, as widely expected. After the statement, traders boosted their bets that the Fed would cut short-term borrowing costs in June – but not before then.

Both governor Christopher Waller – a contender to replace Fed chair Jerome Powell when his term as central bank chief ends in May – and governor Stephen Miran, on leave from his job as an economic adviser at the White House, dissented in favour of a quarter-percentage-point rate cut.

Gold, a traditional safe-haven asset, has gained more than 25 per cent so far in 2026, typically benefiting from a low-interest-rate environment, after rising 64 per cent in 2025.

Meanwhile, with gold prices setting new all-time highs this week, customers have been cramming into stores in Shanghai and Hong Kong that sell the precious metal, with some betting the price could rise even further.

Spot silver was steady at US$116.61 an ounce after hitting a record high of US$117.69 on Jan 26.

Spot platinum rose 0.4 per cent to US$2,705.79 an ounce, after hitting a record US$2,918.80 on Jan 26, while palladium rose 0.3 per cent to US$2,079.32 an ounce. REUTERS