By Tian Jingxin

On Jan. 28, the global precious metals market set a new historical record. Spot gold surged past the $5,300-per-ounce mark during early Wednesday trading, hitting an intraday high of $5,311.31.

As of 8:32 a.m. GMT, spot gold was trading at $5,305.65 per ounce, up 2.3 percent on the day. Since the beginning of 2026, gold prices have risen by more than 20 percent.

Reuters reported that the immediate catalyst for the accelerated rise in gold prices was recent comments by U.S. President Donald Trump during a visit to Iowa regarding the U.S. dollar. When asked by reporters whether he was concerned about the dollar falling to a nearly four-year low, Trump appeared relaxed and replied, “No, I think that’s a good thing.” He further explained that the current level of the dollar benefits U.S. businesses: “Look at the business we’re doing—the dollar is doing very well.”

Trump also said he hopes the dollar can “find its own balance.” The market widely interpreted these remarks as signaling White House support for revitalizing U.S. manufacturing and boosting exports through a “weaker dollar.” Since gold is priced in U.S. dollars, a declining dollar significantly lowers the cost of gold for overseas buyers, triggering strong demand.

Ingots of 99.99 percent pure gold are placed in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, Sept. 15, 2023. (Image: REUTERS/Alexander Manzyuk/File Photo)

Market reaction and institutional forecasts

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Following Trump’s comments, the U.S. dollar index (DXY) continued to weaken on Wednesday. At the same time, market expectations regarding Federal Reserve policy shifted subtly. Citing analysts, Reuters noted that investors are closely watching Trump’s forthcoming announcement of the next Federal Reserve chair, with markets expecting the new appointee to be more inclined toward interest rate cuts.

In a report released Tuesday, Deutsche Bank raised its gold price target to $6,000, citing continued increases by global central banks and investors in allocations to non-dollar and physical assets. Other precious metals also posted notable gains: spot silver climbed to $114.68, while platinum rose 2.3 percent to $2,703.11.

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