Gold price on January 29: Zooms past $5,500 mark for the first time as Fed leaves rates unchanged

Gold price today

• Gold hit a record $5,584/oz, driven by geopolitical tensions and Fed rate pause
• Gold futures closed at Rs 1,67,800 per 10g, up 0.42% from previous close
• Safe-haven demand rises amid US-Iran tension, Ukraine crisis, and tariff threats

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Gold blistered past the $5,500 an ounce mark for the first time on January 29, supported by the US Federal Reserve's decision to leave rates unchanged and simmering geopolitical and trade tensions. After touching an all-time high of $5,584 in the international market, the yellow metal was hovering around $5,519, up 4.06 percent from the previous close.

On MCX, the metal on Thursday surged at an all-time high of Rs 1,92,991 per 10 grams of 24 carat purity, representing a 8.94 percent gain from its previous close at Rs 1,77,153. The metal previously peaked at Rs 1,77,996 on January 28, 2026.

Gold prices vary by purity. Check the prices of gold based on its purity:

City-wise gold prices in India today

Gold rates across India’s major cities showed remarkable uniformity, with only marginal differences due to local taxes, jeweller margins, and logistics costs.

Why is gold price up?

Policy uncertainty around growth, trade, and fiscal sustainability tends to pressure the USD, increasing volatility expectations. If this environment continues, gold and silver benefit as a softer or range-bound USD would support precious metals. Also, heightened uncertainty boosts safe-haven demand as investors seek assets less exposed to policy error or fiscal strain.

"The January FED meeting held the base rate as largely expected, with Chair Powell striking a balanced but cautious tone. He acknowledged that the labour market is becoming more stable, but job growth is slowing as labour force participation declines and demand softens, with some of this being linked to AI in the near-term," Ross Maxwell, Global Strategy Operations Lead at VT Markets.

Inflation remains above target but is broadly in line with expectations. At the same time, incoming data points to clearly stronger growth and a better overall outlook, giving the FED confidence to stay patient rather than trying to pre-empt.

Powell again continued to stress that policy will remain firmly data-driven. With risks to both inflation and employment having diminished and expectations in line, Powell said ‘’rate hikes are not anyone’s base case’’. Further cuts would be warranted if the labour market weakens, if labour risks re-emerge, or if tariff-related price pressures fade. He also warned that the US budget deficit is unsustainable, underscoring longer-term fiscal risks that complicate the policy backdrop.

"Globally, this dynamic can loosen financial conditions outside the US, supporting emerging market assets and commodities, while keeping risk sentiment fragile. Equities may grind higher, but with higher cross-asset volatility as markets adjust to a Fed that is increasingly sensitive to downside risks," Maxwell said.

Outlook: Will gold continue its momentum?

"Gold traded strongly positive with gains... on MCX.  Ongoing tariff uncertainty from the US and continued allocation into safe-haven assets have further supported the rally. However, after such a sharp and extended upmove, gold is entering an overheated zone where volatility can increase," said Jateen Trivedi, VP research analyst, commodity and currency, LKP Securities.

The US central bank kept the policy rate unchanged after Fed policymakers voted 10-2 to hold the central bank's benchmark interest rate in the 3.50-3.75 percent range. The US unemployment rate in December stood at 4.4 percent. The yield on the 10-year Treasury is up at 4.25 percent, and the two-year Treasury yield is at around 3.57 percent.

Gold also surged amid ongoing tension between the US and Iran and the crises in Ukraine and Gaza. US President Donald Trump's 100 percent tariff threat against Canada if it strikes a trade deal with China and warning of a 25 levy against South Korea have intensified the safe-haven demand in bullion.