Gold's blistering rally continues past $5,200 as dollar plunges to 4-year low

Gold broke through $5,200 for ​the first time on Wednesday, after rising more than 3 percent on Tuesday, as ‌the dollar plunged to a near four-year low amid persisting geopolitical concerns, ahead of a US Federal Reserve monetary policy decision.

Spot gold jumped 1.1 percent to $5,243.58 per ounce, as of 0314 GMT, after scaling a record high of $5,247.21 earlier, up more than 20 percent since the start of the year.

US gold ‌futures for February delivery surged 3.1 percent to $5,237.70 per ounce.

"(Gold's rise) is due ​to the very strong indirect correlation with the dollar and yesterday's price-rise in gold in the US session was due to Trump's remark to a casual question about the dollar ‍which implied that (there is) a broad-based consensus within the White House to have a weaker greenback going forward," said Kelvin Wong, a senior market analyst at OANDA.

The US dollar was grappling with a "crisis of confidence" as ⁠it struggled near four-year lows, exacerbating dollar selling, after President Donald Trump said the currency's ‍value is "great" when asked whether he thought it had declined too much.

US consumer confidence, meanwhile, slumped to its ‌lowest level ‌in more than 11-1/2 years in January amid mounting anxiety over a sluggish labor market and high prices.

Trump added that he will soon announce his pick to serve as head of the US central bank, and predicted interest rates would decline once the new chair takes over.

The ⁠Fed is widely expected ⁠to hold rates ​steady at its January monetary policy meeting, currently underway. 

Wong added that near-term resistance for gold could be seen around $5,240/oz. Deutsche Bank said on Tuesday that gold could climb to $6,000 per ounce in 2026, citing persistent ‍investment demand as central banks and investors increase allocations to non-dollar and tangible assets.