Gold price hits new record: over $5,600 an ounce

The price of gold crossed the $5,600 an ounce threshold on foreign markets yesterday, a level recorded for the first time in history, amid geopolitical tensions and the depreciation of the US dollar.

The price of gold futures for delivery in April was $5,562.3 an ounce on Comex New York, at 08:03 local time, up 4.2% from the previous day. Previously, the gold price reached a historical high of $5,626.80/ounce.

The spot price of the yellow metal was, at the same time, $5,524.28 an ounce, up 2%.

"Gold's perfect storm continues, with geopolitical tensions between the US and Iran, a weak dollar and market expectations of further Fed rate cuts pushing prices to record lows,” said Jamie Dutta, a market analyst at Nemo.money, according to Reuters, adding that strong inflows into ETFs also contributed to the rise.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said on Wednesday that its holdings had risen to 35,043,181 ounces, the highest since May 2022.

US President Donald Trump on Wednesday pressed Iran to negotiate a nuclear deal, warning that Washington would respond more forcefully than it did in last year's attack on Iranian nuclear facilities.

Tehran responded by threatening retaliatory measures against the US, Israel and its allies.

On the other hand, the US Federal Reserve decided on Wednesday to keep interest rates unchanged, as investors await Trump's announcement on the new chairman of the central bank, who will replace Jerome Powell.

In this context, the US dollar remained on unstable ground, after reaching a four-year low on Tuesday, following Trump's statements, which overlooked the recent depreciation of the US currency. A weaker dollar makes gold more attractive to foreign buyers.

Against the backdrop of an uncertain geopolitical and economic context, "additional gains are possible for gold, which could rise above the $6,000 level and, after a period of consolidation, head towards $7,000 by the end of the year," says analyst Ricardo Evangelista of ActivTrades.

And Michael Hartnett, an analyst at Bank of America, recently wrote in a note to clients, quoted by sadanews.ps: "History is no guide to the future, but the average increase in the price of gold over four cycles has been about 300% over 43 months, which means that the price of gold could reach $6,000 by spring.” Michael Hartnett's expectations reflect growing optimism about gold, supported by central bank purchases, supply dynamics and investors seeking protection against currency risks, although the $6,000 level is significantly higher than most analysts' forecasts.

On January 5, Michael Widmer, head of metals research at Bank of America, said that gold will remain a key asset in investors' portfolios this year. Widmer said: "Gold continues to stand out as a hedge and a source of additional returns.”

Bank of America believes that tightening market conditions and sensitivity to strong earnings make gold a key hedge and a potential driver of returns in 2026.

Bank of America's 2026 forecast is based on expectations of falling supply and rising costs in the gold sector. Widmer predicted that the 13 largest gold miners in North America will produce 19.2 million ounces this year, down 2% from 2025, adding that most market forecasts for production are too optimistic.