ETO Markets Global Pulse: Gold Surges 3.5% to $5,180 as Dollar Breaks Key Levels

Market Review

According to ETO Markets monitoring, on January 27 (Tuesday), gold prices surged sharply again. Spot gold jumped USD 173.43 in a single session, up 3.46%, closing at USD 5,181.78 per ounce. Both intraday and closing prices marked new historical highs.

Spot silver rallied in tandem, rising USD 8.28 or 7.97% to USD 112.14 per ounce, as the broader precious metals complex remained firmly bid.

In early Asian trading on January 28 (Wednesday), spot gold continued to trade at elevated levels, hovering near USD 5,180 per ounce, just shy of the USD 5,200 threshold.

Global Headlines

1) Trump Downplays Dollar Moves as DXY Hits Two-Year Low

Trump said he is not concerned about dollar weakness, describing the currency as something that can “move like a yo-yo,” and adding that the dollar is “doing fine.” During these remarks, the U.S. dollar index briefly rebounded before selling off sharply, dropping more than 50 points intraday to its lowest level since February 2022. Non-USD currencies strengthened, offshore RMB briefly approached 6.93, while gold pushed decisively above USD 5,180.

2) U.S. Faces Renewed Shutdown Risk Over Immigration Funding Standoff

U.S. Senate Republican leader John Thune said Congress is in urgent talks with the White House to avoid a partial government shutdown after funding expires on the 30th. Disputes center on Department of Homeland Security funding and immigration enforcement authority. Failure to reach a deal could disrupt federal operations as early as month-end.

3) Fed Hold Fully Priced Ahead of January Decision

The Federal Reserve is set to announce its rate decision early January 29 Beijing time. CME FedWatch data as of January 27 shows only a 2.8% probability of a 25 bp cut in January, versus a 97.2% probability of no change. Markets broadly expect the Fed to remain on hold at this meeting.

4) Iran Claims Full Real-Time Control of Hormuz Strait

A senior commander of Irans Islamic Revolutionary Guard Corps Navy said Iran has implemented round-the-clock, intelligent monitoring of the Strait of Hormuz, stressing that passage of vessels is subject to Iranian discretion. The remarks heightened market attention on Middle East shipping and energy corridor risks.

5) Citi Raises Silver Target to $150

Citi Research raised its silver price target from USD 100 to USD 150 per ounce, citing strong investment and speculative demand that could further tighten physical supply. The report also noted that profit-taking by Chinese investors during the Lunar New Year period may introduce near-term volatility.

6) Deutsche Bank Sees Copper at $13,000 in Q2

Deutsche Bank expects copper prices to reach around USD 13,000 per tonne in the second quarter before easing as supply recovers. Aluminum prices are also seen peaking in Q2 before softening, while iron ore prices are forecast to move lower after an early-year high.

ETO Markets Analyst View (Spot Gold)

The short-term structure remains decisively strong. As long as prices hold above the 5,030 region, the broader bullish setup remains intact. Upside focus stays on market reaction around the 5,140 and 5,180 zones.

A sustained move below 5,030 would raise the risk of a corrective pullback toward 4,990 and potentially 4,965. Current price action remains highly sensitive to event risk and liquidity shifts, suggesting gains may be digested through elevated range trading rather than a straight extension.

RSI remains above the neutral 50 level, indicating bullish momentum still dominates, though the risk of chasing at highs has increased.

With a key policy window approaching and frequent disruptions from geopolitics and FX moves, investors are advised to closely monitor market developments and manage exposure prudently.

Disclaimer

The information contained herein is for general reference only and does not constitute investment advice, a solicitation, or an offer to buy or sell any financial products.

ETO Markets does not guarantee the accuracy, completeness, or timeliness of the information and shall not be liable for any losses incurred from reliance on such content.