Spot gold tops $5,400/oz as investors seek safe havens amid geopolitical and economic uncertainty. The Fed holds rates at 3.5–3.75%, as expected.
Global gold prices jumped to a fresh all-time high, breaking above $5,400 an ounce, after former US President Donald Trump warned Iran to reach a nuclear deal and the US Federal Reserve kept interest rates unchanged, as expected.
Reuters reported that spot gold surged to a record high on Thursday (29 January 2026), climbing above $5,400 an ounce as investors sought safe-haven assets amid heightened economic and geopolitical uncertainty.
Spot gold rose 0.3% to $5,415.52 an ounce at 22:46 GMT, after touching an all-time intraday high of $5,418.39 earlier in the session.
In its post-meeting statement, the Fed said available indicators suggest economic activity is expanding at a steady pace, job gains remain low, and the unemployment rate is showing some signs of stabilization. Inflation remains slightly above normal.
Fed holds rates as expected; sees economy improving, labour market steady
The US central bank kept its policy rate unchanged at 3.5–3.75%, following a period of consecutive cuts.
CNBC reported that the Fed held the policy rate at 3.5–3.75% after a series of reductions in recent months. “Available indicators suggest that economic activity is expanding at a strong pace. Job gains remain low, and the unemployment rate shows some signs of stabilisation,” the central bank said in its post-meeting statement, adding that inflation remains “slightly elevated”.
On Wednesday, the Fed voted to pause further rate cuts temporarily, at a time when the central bank’s independence is under increased scrutiny and it awaits new leadership.
As markets had anticipated, the policy committee voted to keep rates steady at 3.5%–3.75%, halting a run of three consecutive 0.25 percentage point cuts. The move was framed as an effort to maintain stability in a weakening labour market.
In deciding to hold rates, the committee raised its assessment of economic growth and reduced its concern over the labour market relative to inflation.
Notably, the statement removed language suggesting the committee saw greater risk from weaker labor market than from higher inflation. The change was viewed as consistent with a more balanced view of the Fed’s dual mandate—low inflation and maximum employment—and could support a slower pace of easing, at least in the near term.
Source: The Nation