On Thursday, January 29, 2026, global financial markets saw an extraordinary surge in precious metals as investors increased safe-haven buying amid heightened geopolitical tensions and economic uncertainty. Spot gold prices reached a record high near $5,600 per ounce intraday before pulling back slightly, while silver climbed close to $120 per ounce, marking historic peaks for both metals. These moves reflect strong investor demand for assets viewed as stores of value during turbulent times.
Market commentators are dubbing this sustained rally the “Great Revaluation,” as gold and silver shift from traditional inflation hedges to central components in risk-off portfolios. As confidence in risk assets wavers, investors appear to be reallocating capital toward tangible stores of value.
A key driver of this trend is persistent geopolitical tension, particularly in the Middle East, where escalating conflicts have boosted safe-haven demand. Ongoing concerns about potential military actions and broader regional instability have weighed on risk sentiment and pressured currencies, pushing some investors into precious metals.
This metals rally has also coincided with a decision by the U.S. Federal Reserve to hold interest rates steady at 3.50%–3.75%, a move that can reduce the opportunity cost of holding non-yielding assets like gold and silver. A weaker dollar and expectations of prolonged low real rates have further supported precious metal prices.
Another factor underpinning demand is structural portfolio shifts by major global holders of reserves. Several emerging markets and central banks have increased gold allocation in recent years as part of broader diversification strategies amid uncertainty over the future role of the U.S. dollar in global finance.
While gold often dominates headlines due to its monetary role, silver’s run has also been remarkable, supported by both safe-haven demand and its industrial applications in electronics and renewable energy sectors. Higher silver prices may affect cost dynamics for industries relying heavily on the metal.
The combined rally in gold and silver, alongside broader market volatility, suggests that investors are increasingly pricing in prolonged uncertainty and reassessing the traditional roles of currencies and sovereign debt in portfolios. However, analysts also caution that such sharp moves can attract profit-taking and increased volatility in the short term.
https://www.perplexity.ai/page/china-reduces-us-treasury-hold-DzzrC0aKQPm66zRXFTEIew
