Daijiworld Media Network – New Delhi

New Delhi, Jan 28: Gold prices surged to a fresh record high during Asian trading on Wednesday, climbing close to $5,220 per ounce, supported by a sharp fall in the US Dollar and heightened global uncertainty.

The precious metal continued its upward rally as the US Dollar Index (DXY) slipped to its lowest level since February 2022, following remarks by US President Donald Trump. When asked about the dollar’s decline, Trump said the value of the USD was “great”, triggering further weakness in the greenback and boosting demand for dollar-denominated commodities such as gold.

Market participants also turned to gold as a safe-haven asset amid rising geopolitical tensions and renewed trade war fears. Earlier this month, Trump made a series of strong statements including threats related to Greenland, possible fresh tariffs on European nations, and warnings involving Canada and China, adding to investor anxiety across global markets.

Meanwhile, all eyes are now on the US Federal Reserve’s interest rate decision scheduled later on Wednesday. The central bank is widely expected to keep interest rates unchanged in the 3.50% to 3.75% range after three consecutive rate cuts late last year.

Traders are closely monitoring Fed Chair Jerome Powell’s post-meeting remarks for clues on the future direction of monetary policy. Analysts said any hawkish signals from the Fed could strengthen the dollar and cap gains in gold in the near term.

Gold remains in focus as investors seek protection against economic uncertainty, global instability, and shifting policy signals from Washington and the Federal Reserve.