Gold Slides Over 4% After Hitting Record High

2026-01-29 15:53 By Joana Ferreira 1 min. read

Gold fell more than 2% to around $5,300 per ounce as investors took profits after a strong rally that pushed prices a fresh all-time high of $5,600.

Bullion had been supported by waning confidence in US assets amid rising economic and geopolitical uncertainty, with momentum accelerating after President Trump downplayed the dollar’s drop to four-year lows, signaling tolerance for a weaker currency amid renewed tariff threats and fresh criticism of the Fed’s independence.

The Fed kept interest rates unchanged, citing labor-market stabilization, while warning that inflation remains high and the outlook uncertain.

Geopolitical risks remained elevated after Iran vowed to “defend itself and respond like never before” following new US threats.

The situation was further intensified by the EU designating Iran’s Islamic Revolutionary Guard Corps (IRGC) as a terrorist organization, the US bolstering its military presence near Iran, and Tehran conducting live-fire drills in the Strait of Hormuz.



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