Gold Price Smashes Records, Surges Past US$5,500 Amid Market Turmoil
SYDNEY, 29 January 2026 – The price of gold has extended its historic rally, breaking through the US$5,500 per ounce barrier as investors flock to safe-haven assets amid heightened geopolitical uncertainty and shifting central bank policy. The precious metal’s relentless surge is providing a powerful tailwind for Australian gold miners and the local sharemarket.
Record-Breaking Rally Continues
Gold has staged a breathtaking ascent over the past week, climbing more than US$100 in a single session at times. Early on 29 January, the spot price tested US$5,600 before settling slightly lower. This follows its first-ever breach of the US$5,000 level just days prior. Analysts attribute the move to a “perfect storm” of factors: persistent central bank purchases, a weakening US dollar, and investors seeking protection from global instability.
Silver, often referred to as “poor man’s gold,” has joined the rally, trading above US$100 per ounce for the first time in history. The simultaneous surge in both precious metals underscores a broad-based flight to tangible assets.
Key Market Prices & Movements
| Asset / Metric | Price / Level |
|---|---|
| Gold Spot Price (USD per oz) | Above US$5,550 (Record High) |
| Gold Spot Price (AUD per oz) | Approx. A$7,850 |
| Silver Spot Price (USD per oz) | Above US$100 (Record High) |
| ASX 200 Index | 3-month high (Late October levels) |
| AUD/USD Exchange Rate | Near 0.7050 |
Australian Market Rides the Golden Wave
The surge in bullion prices has catalysed a powerful rally in Australian gold equities. The S&P/ASX 200 Index has climbed to its highest level since late October, driven largely by strength in the materials sector. Several ASX-listed gold producers have hit all-time highs this week on the back of strong quarterly results and the soaring commodity price.
Market analysts note that the gold sector has doubled as a proportion of the ASX this year, rewarding investors who maintained exposure. The rally has also spilled over into related exchange-traded funds (ETFs), with some commodity-focused ETFs delivering returns between 110% and 150% in 2025.
Drivers Behind the Precious Metals Boom
Several interconnected forces are fuelling the historic rally. Primarily, escalating geopolitical tensions have triggered a classic flight to safety, with gold being the ultimate haven asset. Concurrently, central banks worldwide, particularly in emerging markets, have been net buyers of gold for over a decade, adding to structural demand.
Monetary policy is also playing a key role. The US Federal Reserve’s decision to hold interest rates steady has pressured the US dollar, making dollar-denominated gold cheaper for holders of other currencies. In Australia, stronger-than-expected inflation data has markets betting the Reserve Bank of Australia (RBA) will hike rates, boosting the Australian dollar and supporting local gold producer margins.
Frequently Asked Questions
Why is the gold price so high?
The price is being driven by a combination of massive central bank buying, heightened geopolitical risks, a weaker US dollar, and its role as a portfolio diversifier amid economic uncertainty.
How are Australian gold stocks performing?
Australian gold stocks are surging, with many reaching record highs. The sector has significantly outperformed the broader ASX 200 index this year, benefiting directly from the higher US dollar gold price.
Will the rally continue?
While prices are at record levels, analysts note the momentum remains strong due to the persistent underlying drivers. However, the extreme volatility suggests prices can swing sharply in both directions.
What does this mean for the Australian dollar?
The commodity boom, led by gold, is providing strong support for the Australian dollar. Combined with expectations of an RBA rate hike, the AUD has broken above 0.7000 against the US dollar, reaching multi-month highs.