Gold's Glittering Run Pushes Prices Above $5,500

By Giulia Petroni

Gold surged past $5,500 an ounce for the first time, extending a historic rally boosted by a weaker U.S. dollar and growing expectations that the next Federal Reserve chair will pursue further monetary easing.

In early European trade on Thursday, futures in New York climbed 3.8% to $5,505.70 a troy ounce after reaching $5,586.20 earlier in the session. Prices have gained nearly 27% so far this year, as investors shy away from bonds and currencies in favor of hard assets.

"Geopolitical tensions, concerns over Fed independence and expectations of a more dovish policy outlook reinforced the debasement trade," said Soojin Kim, analyst at MUFG.

The U.S. dollar index--which measures the greenback against a basket of major currencies--is down 0.2% to 96.24, making dollar-denominated commodities more attractive to overseas buyers.

The Federal Reserve on Wednesday held interest rates steady and signaled little urgency to resume cuts, with Chair Jerome Powell saying recent data pointed to stronger economic growth and tentative signs of labor-market stabilization.

The decision came amid concerns over the U.S. central bank's independence after the Justice Department opened a criminal investigation into Powell, and as President Trump's advisors said he is close to naming his pick for chair.

"Traders were encouraged by reports that Rick Rieder is a leading candidate to replace Jerome Powell as Fed chair," analysts at ANZ said. "The Blackrock executive has advocated for lower borrowing costs." Lower interest rates typically benefit precious metals by reducing the opportunity cost of holding a non-yielding asset relative to interest-bearing bonds.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

January 29, 2026 04:33 ET (09:33 GMT)