Topics Market Pulse

Weaker US dollar sends Gold, Silver, even Copper to new record highs!

Beginner
Market Pulse
Daily Bits
29 Jan 2026

Commodities are posting new record highs on this penultimate trading day of January 2026, boosted by the weaker US dollar.

  • Gold (XAUUSD+) got to within a hair of the $5600 mark.

XAUUSD_1.png

Southeast Asian banking giant, OCBC, expected $5600 gold only by end-2026, while Goldman Sach's year-end target of $5400 has been smashed.

If this frenzy continues, spot gold may yet touch $6400 as per the Bloomberg model we cited in our outlook published earlier this week.

READ MORE: Gold now above $5000 (told ya)! How high can XAUUSD+ go?

  • Silver (XAGUSD) briefly breached the $120 level today for the first time in its history

XAGUSD_.png

  • Copper (COPPER-C) also skyrocketed to its own record high, briefly breaking above $6.30.

COPPER-C.png

What's driving Gold, Silver, and Copper higher?

Note that these global commodities are each priced in US dollars i.e. XAUUSD and XAGUSD.

Hence, a weaker US dollar makes these assets' prices more attractive for global investors.

Furthermore, these commodities are enjoying tailwinds from:

  • "Debasement Trade": markets are shunning major currencies and government bonds, in favor of precious metals.

  • Stronger industrial use: With the Fed yesterday citing an improving US economic outlook, that should bode well for copper and silver, amidst the rising use for data centers, robotics, as well as energy infrastructure.

  • Geopolitical tensions: Persistent uncertainties around the world as the Trump administration strains ties with other countries, including traditional western allies, have fuelled demand for safe haven and physical assets.

The buying mania stretches from London to Shanghai, attracting long-term believers and short-term speculators.

News of stablecoin-issuer Tether, which has been buying about 1 or 2 tons of golf per week, now boasting the world's biggest known bullion hoard outside of banks and governments, is also likely adding to the momentum.

Still, such a stunning surge may require a healthy pullback soon, in order to set a more sustainable foundation for further gains.

Still, the price action across asset classes, from commodities to even stocks, offers trading opportunities aplenty for market participants who are willing to diversify and not miss out on outsized opportunities.