Gold prices climbed to record levels on Wednesday, driven by a sharp decline in the US dollar and growing investor demand for safe-haven assets.
Spot gold rose 1.1% to $5,243.58 per ounce by 03:14 GMT, after touching an all-time high of $5,247.21 earlier in the session. Prices have now gained more than 20% since the start of the year.
US gold futures for February delivery advanced 3.1% to $5,237.70 per ounce, extending Tuesday’s strong rally of over 3%.
Analysts linked the surge in gold to the dollar’s steep decline, which pushed the greenback close to a four-year low.
Kelvin Wong, senior market analyst at OANDA, said gold continues to move in strong inverse correlation with the dollar. He noted that recent gains followed comments by Donald Trump, which markets interpreted as White House support for a weaker dollar.
Read: Gold Hits Record Above $5,000 Amid Global Geopolitical Uncertainty
The dollar struggled amid what analysts described as a “crisis of confidence,” after Trump said the currency’s value was “great” when asked whether it had fallen too far.
US consumer confidence fell to its lowest level in more than 11 years in January, reflecting concerns over a softening labour market and persistent inflation pressures. These signals reinforced demand for gold as a hedge against economic uncertainty.
Trump also said he would soon announce his nominee to lead the US central bank and predicted that interest rates would decline under new leadership. Markets still expect the Federal Reserve to keep rates unchanged at its January policy meeting.
Wong said near-term technical resistance for gold stands around $5,240 per ounce, though momentum remains firmly positive.
Meanwhile, Deutsche Bank said gold could climb to $6,000 per ounce in 2026, citing sustained investment demand as central banks and investors increase exposure to non-dollar and tangible assets.
Spot silver gained 1.9% to $115.11 per ounce, after hitting a record high of $117.69 earlier this week. The metal has surged nearly 60% so far this year, supported by strong industrial and investment demand.
