Usman Salis
⬤ Gold held steady above $5,300 on January 28, pushing higher through the session despite the US dollar bouncing back. The greenback got a lift from slightly higher Treasury yields as traders bet the Federal Reserve will keep rates on hold. Still, gold showed no real signs of cracking, proving it can weather short-term currency swings and rate moves.
⬤ XAU/USD climbed as high as $5,325.97 before settling around $5,303—a solid $120 gain, or about 2.4% for the day. The metal dipped briefly toward $5,157 earlier in the session before buyers jumped back in, driving prices higher through most of the trading day even as the dollar firmed up alongside yields.
⬤ What's interesting here is gold's ability to ignore the usual headwinds. Normally, higher yields hurt non-yielding assets like gold, but traders seem more focused on the big picture—things like currency debasement, mounting fiscal issues, and changing global liquidity conditions. Those forces are clearly carrying more weight right now than whatever the Fed might do next meeting.
⬤ This session reinforced gold's status as a macro hedge when policy gets uncertain and monetary conditions shift. Sure, yields and the dollar still create some intraday chop, but the broader story around confidence and long-term debasement themes is what's really driving XAU. With the metal staying elevated despite dollar strength, it's clear these deeper concerns aren't going away anytime soon—regardless of individual Fed decisions.
Usman Salis
