Gold Prices Hit New Record Above US$5,200 per Ounce, Driven by Dollar Weakness and Central Bank Buying
Jakarta, MetalNews Digital
Global gold prices once again recorded a new all time high, breaking above US$5,200 per troy ounce in the latest trading session. The rally was driven by a weaker US dollar, declining real yields, and continued gold purchases by central banks and exchange traded funds amid rising global economic and geopolitical uncertainty.
The strengthening of gold prices occurred alongside growing risk aversion in international financial markets. Global investors have increasingly shifted funds toward safe haven assets due to concerns over the direction of US monetary policy, political uncertainty, and fragile global economic conditions.
The global gold rally was reflected on the JFXGOLD X Physical Gold Exchange. During trading on Wednesday, 28 January 2026, gold prices on JFXGOLD X were recorded at US$5,241.06 per troy ounce, equivalent to IDR 2,862,407 per gram. Compared with the previous trading session, prices increased by 3.17 percent, or approximately IDR 76,000 per gram within a single trading day.
From a fundamental perspective, market participants are increasingly factoring in the possibility that the US Federal Reserve may halt or adjust its monetary tightening cycle earlier than previously expected. This shift in expectations has weighed on real US Treasury yields and supported gold prices, which historically exhibit a negative correlation with both real yields and the US dollar.
Beyond monetary factors, elevated geopolitical risks and political uncertainty across several regions have further strengthened demand for gold as a safe haven asset. Ongoing purchases by central banks and global financial institutions reflect efforts to diversify reserves and protect asset values amid heightened volatility in global financial markets.
Nevertheless, Head of Research, Analysis, and Market Development at Metalbank Global Monetary, Robby Leonardo, noted that short term gold price volatility remains elevated. According to him, a more hawkish stance by the Federal Reserve, weakening ETF inflows, or stronger than expected US economic data, particularly inflation and labor indicators, could trigger short term price corrections.
“In the near term, gold price movements will continue to be heavily influenced by global economic developments and the direction of US monetary policy. As long as central bank purchases and ETF inflows persist, the upward trend in gold prices is supported by strong structural factors, although accompanied by significant fluctuations,” Robby told MetalNews.
Meanwhile, shifts in US monetary policy expectations have also affected other global asset classes. Emerging market currencies, including the Indonesian rupiah, have tended to trade within a limited range as movements in the US dollar and Treasury yields remain the dominant drivers of global financial markets.
Gold transactions through the JFXGOLD X Physical Gold Exchange can be accessed via the METALGO+ and NUNOMICS applications, as well as through the Pospay Gold feature within the Pospay application.
Disclaimer
Price information and market analysis are provided for informational purposes only and do not constitute investment advice. Market conditions may change at any time. Investors are advised to conduct independent analysis before making investment decisions.
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