Commodities January 29, 2026

Gold Pulls Back After Volatile Rally, January Gains Remain Exceptional

Prices retreat in early Asian trade following a day of record highs and steep reversals, but bullion posts a standout monthly advance

By Leila Farooq
Gold Pulls Back After Volatile Rally, January Gains Remain Exceptional

Gold slipped in early Asian trading on Friday after a volatile session that saw the metal hit record highs and then fall sharply. Spot gold declined 0.5% while April futures ticked up 0.3%, but the metal is still on track for a powerful monthly gain driven by safe-haven flows and a weaker dollar amid geopolitical and U.S. fiscal uncertainty.

Key Points

  • Spot gold fell 0.5% to $5,342.70/oz in early Asian trade while April futures rose 0.3% to $5,365.39/oz as of 20:13 ET (01:13 GMT).
  • Gold is up nearly 24% for January, adding about $1,000/oz this month and headed for its best monthly gain since the 1980s; silver, platinum, and palladium also posted large monthly gains.
  • Geopolitical reports that the U.S. planned further attacks on Iran and a sharp drop in the dollar amid U.S. fiscal uncertainty pushed safe-haven demand for metals.

Gold eased in early Asian trade on Friday, retreating after a volatile session that combined strong safe-haven buying with profit-taking and produced both record highs and rapid price reversals.

Spot gold fell 0.5% to $5,342.70 an ounce, while April gold futures were up 0.3% at $5,365.39/oz as of 20:13 ET (01:13 GMT). Despite the pullback, the metal remained on course for an exceptional monthly performance.

On Thursday bullion climbed to nearly $5,600/oz amid reports that the U.S. was planning further attacks on Iran, a development that pushed traders toward traditionally safer assets. That episode contributed to a whipsaw trading day in which prices first rose to record levels and then retreated as participants booked profits.

Other precious metals also cooled on Friday after acute volatility earlier in the week. Spot silver lost 1% to $114.0470/oz, remaining close to a Thursday record high, while spot platinum dropped nearly 2% to $2,600/oz.


Monthly performance and market drivers

For January, spot gold was trading up nearly 24%, positioning the metal for its best monthly advance since the 1980s. Over the month the yellow metal added roughly $1,000/oz as investors sought refuge in metals and other physical assets.

Heightened global geopolitical tension - notably between the U.S. and other world powers - helped to amplify demand for safe havens. A sharp decline in the dollar, driven by growing concerns over U.S. fiscal health, also supported metals, alongside continuing uncertainty about the path of U.S. interest rates.

Other metals were swept up in the buying trend. Silver was set to add more than 62% for the month, emerging as the standout performer. Platinum was trading up 28.4%, and palladium was up 25.3% for January.


Market context and trade dynamics

The recent price action illustrated a mix of forces: renewed haven demand prompted by geopolitical reports, and near-term profit-taking that produced sharp intraday swings. Futures and spot markets reflected these competing impulses, with slight divergence between spot declines and a modest rise in front-month futures during the early Asian session.

Moving forward, these same drivers - geopolitical tensions, dollar direction, and uncertainty over U.S. interest rates - are likely to remain central influences on bullion and other precious metals, although short-term volatility can produce abrupt reversals as positions are adjusted.

Risks

  • Ongoing geopolitical tensions, particularly involving the U.S. and other world powers, could continue to drive abrupt shifts in safe-haven demand, affecting bullion and broader metals markets.
  • Uncertainty over U.S. fiscal health and a sharp drop in the dollar could sustain volatility across currency-sensitive metal markets, impacting exporters, importers, and currency-linked portfolios.
  • Unclear direction for U.S. interest rates contributes to market uncertainty and can produce rapid profit-taking and intraday price reversals in spot and futures markets.

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