Topline
Gold smashed through another record price of $5,300 on Wednesday morning, continuing a rally that has lifted the price of the precious metal more than 20% in January after a record-breaking 2025, with analysts citing a weak dollar and concerns over the Federal Reserve’s independence.
Key Facts
The price of gold is about $5,268.80 as of 10 a.m., up more than 3% but slightly down from the all-time record of $5,306 the metal reached earlier Wednesday, the first time it surpassed $5,300.
Silver, though not at a record price, is about $114.90 as of 10 a.m., up more than 8% but down from the high of $117 it hit on Monday.
Gold and silver prices have been on a tear since last year, and both metals have added to their gains throughout 2026, with gold and silver surpassing respective milestones of $5,000 and $100 last week.
Suki Cooper, global head of commodities research at Standard Chartered Plc, said concerns over the independence of the Federal Reserve—following Trump’s attacks on chair Jerome Powell and a federal investigation into whether Powell lied to Congress about Fed renovations—and the potential for more interest rate cuts are “likely driving more rapid allocations to gold, led by retail investors.”
Analysts also cited a weakening dollar, which sank to a four-year low this week, as another reason for gold’s price increase, particularly after President Donald Trump told reporters Tuesday he wasn’t concerned about the dollar’s decline.
Carsten Menke, Julius Baer’s head of next generation research, told the Wall Street Journal gold’s increase is about not just the weakening dollar, but also the “political power games President Trump is playing, both at home and abroad,” as geopolitical tensions also typically cause metals prices to increase.
What To Watch For
How high gold’s price will rise this year. Deutsche Bank said Tuesday the metal could surpass a record $6,000 this year amid the weakening dollar. Last week, Goldman Sachs raised its year-end gold price prediction to $5,400.
Why Else Are Gold And Silver’s Prices Increasing?
Throughout 2026, gold and silver prices have surged amid several major international events, like the U.S. capture of Venezuela’s Nicolas Maduro, protests in Iran and Trump’s push to annex Greenland, as part of which Trump threatened, and backed down from, additional tariffs on European nations. In a note earlier this week, Maybank analysts cited “geopolitical hotspots” as a reason for gold and silver increasing, citing “Trump’s desire to control and establish his rights on Greenland’s minerals, attack Iran and plans for Venezuela as it occupies the country.” Also earlier this week, some analysts attributed a spike in gold and silver to Trump threatening additional tariffs on Canada over the country making a trade deal with China. “China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,” Trump said in a Truth Social post.” China also tightened export restrictions on silver earlier this month, which sparked the ire of Elon Musk as analysts said it could push the price of silver upwards.
Key Background
Gold and silver had a record-breaking 2025, rising about 65% and 150%, respectively. Among the factors contributing to the surge were federal interest rate cuts and tariffs Trump imposed earlier in his second term. Also contributing to silver’s price surge was increased demand, as the metal is necessary in technological processes like electric vehicle production and in AI data centers.
Further Reading
Deutsche Bank sees gold climbing to $6,000/oz in 2026 (Reuters)
