Global gold prices drop as investors cash in after surge
Gold prices fall after hitting record highs, dropping 1.3%. Silver reaches new highs, while geopolitical tensions with Iran add to market uncertainty.
Global gold prices dropped on Thursday, January 29, 2026, after reaching a record high, as investors cashed in on profits. The spot price for gold fell 1.3% to $5,330.20 per ounce at 1:30 PM Eastern Standard Time (6:30 PM GMT). Earlier in the day, gold prices had hit an all-time high of $5,594.82 before pulling back by more than 5% to their lowest point of the day at $5,109.62. US Gold Futures for February delivery closed 0.3% lower at $5,318.40.
David Meger, Director of Metal Trading at High Ridge Futures, commented, "We're seeing aggressive selling after gold hit new all-time highs."
Despite the drop, gold is still on track to achieve its best monthly performance since the 1980s, up around 24% this month alone. The surge is driven by rising economic and geopolitical uncertainties.
UBS also raised its gold price forecast for the first three quarters of 2026 to $6,200 per ounce. However, the forecasted price for the year-end is expected to drop to $5,900 per ounce.
Silver prices, meanwhile, reached a new high of $121.64, rising more than 60% this month due to supply shortages and continuous buying. Spot platinum prices dropped 3.2% to $2,602.85 after reaching a record high of $2,918.80 earlier this week, while palladium fell 3.7% to $1,996.65.
The increasing uncertainty in geopolitical markets has led to shifts in investment trends. President Donald Trump has urged Iran to return to nuclear talks, escalating tensions between the two nations, which further adds to global market uncertainty.
In the cryptocurrency space, Tether, a major cryptocurrency firm, announced plans to allocate 10%-15% of its investment portfolio into gold bars. The world’s largest gold-backed ETF, SPDR Gold Trust, has also increased its holdings to their highest level in nearly four years.
The Federal Reserve (Fed) kept interest rates unchanged, as investors await the announcement of Trump’s appointment of a successor to Jerome Powell, the Fed Chair, whose term ends in May. Market expectations suggest a potential rate cut by the Fed in June 2026.
