Gold Tops $5,000 as Markets Volatile, Dollar Weakens
Gold | 2026-01-27 11:08:00
This move weighed on the dollar and boosted gold, contributing to increased volatility across bond markets.
By Paul Ploumis
SEATTLE (Scrap Monster): Global financial markets faced heightened volatility last week amid geopolitical tensions surrounding Greenland, which later eased following negotiations at the World Economic Forum in Davos. Despite elevated inflation, strong U.S. economic data provided a supportive macroeconomic backdrop. Europe recorded steady activity, Japan held interest rates with a tightening bias, while China’s economic recovery remained uneven.
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Global equity markets closed the week lower, Treasury yields edged up, the U.S. dollar weakened, and crude oil prices gained. Japanese government bond yields continued their sharp rise, prompting a rare “rate check” by the Ministry of Finance and potential intervention, triggering a sharp reversal in USD/JPY. This move weighed on the dollar and boosted gold, contributing to increased volatility across bond markets.
Gold surged dramatically, breaking above key technical resistance and crossing the US$5,000 per ounce milestone. The LBMA Gold Price PM jumped 7.3% to US$4,946/oz, marking its strongest weekly gain in nearly six years. Three weeks into 2026, gold has already climbed 13%, setting multiple all-time highs.
Heightened geopolitical risks, lower currency opportunity costs, and strong options market activity continued to fuel safe-haven demand, reinforcing gold’s powerful upward momentum.
POLL
Which factor will have the biggest influence on gold prices in the coming weeks?
Frequently Asked Questions
- How much did gold rise last week?
Gold surged 7.3% to US$4,946/oz, its strongest weekly gain in nearly six years.
- What factors drove gold’s surge?
Heightened geopolitical tensions, safe-haven demand, lower opportunity costs for holding gold, and strong options market activity.
- How did other markets react?
Global equities declined, Treasury yields edged up, the U.S. dollar weakened, crude oil prices increased, and Japanese government bond yields spiked.
