Gold Stays Near Record High as Dollar Slide Continues

Key Moments

Gold Rally Extends as Dollar Struggles

Gold (XAU/USD) continues to surge, registering fresh record highs for nine sessions in a row and advancing by 20% in under two weeks. On Thursday, the precious metal remains well bid, with price action hovering around $5,535 as the $5,598 all-time high stays within reach.

The advance is being underpinned primarily by broad-based US Dollar weakness. Trump’s erratic trade policy, the contradictory messages about Washington’s Dollar policy, and the continuous attacks on the US Federal Reserve are eroding investors’ confidence in the Grenbeck.

Political tensions have added another layer of support. The US president escalated the confrontation with Iran on Wednesday, issuing a new threat of military action that prompted a response from Tehran. This renewed friction has driven investors toward safe-haven assets such as Gold.

Gold prices surged as Middle Eastern country tensions and cautious Fed optimism reinforced safe-haven demand. XAUUSD printed an all-time high after consecutive bullish days. The price remains above diverging EMAs. Clearing above 5600.00 may propel XAUUSD toward 5700.00 pic.twitter.com/5n8TyfHVkg

— Exness (@EXNESS) January 29, 2026

Technical Picture: Overextended but Still Bullish

From a technical standpoint, the backdrop remains largely unchanged. XAU/USD is holding close to its peak levels after a rapid 20% ascent over just a few days, an extremely stretched move by most measures but one that is backed by solid fundamental drivers.

Technical indicators are signaling conditions that typically precede a downward correction. Price has moved notably away from key Simple Moving Averages, and the Relative Strength Index (RSI) is near 85, reflecting extremely overbought territory. Nonetheless, bullish participants are not yet showing indications of stepping back.

Immediate resistance is located at the recent peak in the $5,600 region. Above that, the 361.8% Fibonacci extension of the mid-January advance, at $5,810, is described as a reasonable upside objective. On the downside, support is seen at the intraday low of $5,545, followed by another intraday level at $5,235.

(The technical analysis of this story was written with the help of an AI tool.)

(This story was corrected on January 29 at 12:58 GMT to say that the XAU/USD support is at $5,545, and not at $4,545 as previously stated.)

Gold Market Basics and Investor Behavior

Why Investors Turn to Gold

Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.

Major Buyers of Gold

Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.

Correlation with the Dollar, Treasuries, and Risk Assets

Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.

Key Drivers of Gold Prices

The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.