Gold price passes $5,300 as the dollar’s decline deepens

The price of gold hit its latest all-time high on Wednesday (28 January) morning, briefly clearing $5,311 per troy ounce, as US president Donald Trump’s comments about a weakening dollar sent investors searching for alternative safe havens.

It marks eight consecutive days of gold hitting a new all-time high. On Monday 26 January, gold broke through the $5,000 threshold for the first time in its history.

With this hurdle in the rear-view mirror, the price of gold now appears to be making further gains still, with the next significant milestone, $5,500, seemingly within the realms of possibility.

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The US Dollar Index fell 1.2% on Tuesday 27 January to its lowest level since February 2022. That is positive for gold prices in itself as gold is valued in dollars.

But the president appears to have compounded the move when asked his thoughts on the decline.

“I think it’s great… look at the business we’re doing,” Trump told reporters, appearing to reference the fact that a weaker dollar would benefit US-based exporters.

Susannah Streeter, chief investment strategist at Wealth Club, said concerns over the longer-term trajectory of the US economy, with rising levels of debt and persistent inflationary risks, were pushing investors towards alternative means of storing their capital.

“Gold is shining ever brightly, as central banks, institutions, and regular investors pile in,” said Streeter. “The weaker dollar is increasing demand from international investors, despite the rapid climb in prices.”

As of Wednesday morning’s peak, gold prices had gained more than 23% through 2026 alone so far. Other comments from Trump, particularly regarding his desire to acquire Greenland and threats of tariffs against eight European countries that opposed the posturing, drove gold prices higher last week.

The gold investing surge made the yellow metal one of 2025’s best-performing assets. The price of gold rose 64.5% over the course of the year, as tariffs and the prospect of a potential AI bubble bursting caused jitters in the stock market and sent investors searching for safe haven assets.

Think you know your gold? Test your knowledge in our gold quiz here.

Which factors are driving the gold price higher?

Trump’s threat to annex Greenland marked a major qualitative shift in a geopolitical landscape that has appeared strained for some time.

Tom Bailey, head of research at HANetf, stresses that while the geopolitical angle is a major driver of gold prices, events surrounding the Federal Reserve (Fed) should not be overlooked.

Trump recently threatened criminal proceedings against Fed chair Jerome Powell, ostensibly over the cost of repairs that were made to the Fed building. But some observers believe that the move is retaliation for Powell cutting US interest rates slower than Trump had wanted.

“The investigation into the Fed is being read as political pressure, raising concerns about the central bank’s ability to retain its operational independence,” said Bailey. “If the Fed is seen as no longer independent, trust in the US dollar (and in dollar assets such as Treasuries) weakens.”

The levels of public debt in developed markets is also causing concern. Japanese bond yields recently spiked, but long-term bond yields have been rising globally.

“The world abounds with risks, from geopolitical disorder to growing and unsustainable debt loads in developed economies,” said Bailey. “But there is now a shadow of doubt over the reliability of historic safe-haven assets such as the dollar and US government bonds. Investors, therefore, are seeking out alternative safe havens.”

Besides geopolitical turmoil, gold is expected to continue to benefit from several tailwinds in the near future, including continued demand from central banks and exchange-traded funds (ETFs), as well as further erosion of the purchasing power of the dollar.

“I don’t see demand from central banks necessarily going away anytime soon,” said Paul Syms, EMEA ETF head of fixed income and commodities product management at Invesco.

How to gain exposure to gold prices

According to Syms, gold has an important role to play in investor portfolios beyond mere price speculation.

“It's been a diversifier,” said Syms. “Overall, gold has tended to have low correlations with both equities and bonds. And it can also act as the inflation hedge.”

If you are considering where to invest for 2026 and want to add some gold exposure, there are three main approaches.

The first one is investing in the metal itself through a financial contract, such as an ETF or exchange-traded commodity (ETC).

Investments into these kinds of products are another factor helping to support gold prices this year.

“European investors are getting involved, having added over $6.5 billion to gold ETCs in 2025 alone, reversing the outflows of 2024,” says Bailey.

See our article on the best gold ETFs for more information.

You can also get indirect exposure by investing in the miners that dig gold out of the ground. This can be done by investing directly in their shares, or by buying a gold fund or investment trust.

Lastly, you can buy physical gold bars or gold coins.

In terms of how much gold to hold in a portfolio, Tom Stevenson, investment director at Fidelity International, suggests around 5-10% is a good amount – which is about the same as you might hold in cash.

“The two offer insurance and dry powder to complement the growth and stability of the shares and bonds that make up the bulk of a balanced portfolio,” he comments.