Gold Hits Record Highs as Fed Holds Rates Steady
By John Nada·Jan 29, 2026·2 min read
Gold prices soared past $5,500 per ounce, reaching new heights as the Fed holds rates steady. Asia markets showed mixed reactions amid global uncertainties.
Spot gold prices surged over 3% to hit a fresh record, surpassing the $5,500 per ounce mark, following the U.S. Federal Reserve's decision to keep its benchmark rate steady at a target range of 3.5% to 3.75%. This jump in gold prices comes amid mixed trading in Asia-Pacific markets, with Australia’s S&P/ASX 200 declining 0.69% and Japan’s Nikkei 225 falling 0.14% after initially gaining.
Investors are closely watching developments in Indonesia, where the benchmark Jakarta Composite suffered significant declines after a warning from MSCI about a potential downgrade to frontier-market status. Goldman Sachs has since downgraded Indonesia to underweight, citing expectations of further passive selling.
Meanwhile, Singapore's central bank opted to maintain its monetary policy, cautioning about inflation risks as the economic outlook remains resilient. The Straits Times Index saw a slight increase of 0.19%.
In the U.S., the S&P 500 reached an all-time intraday high of 7,002.28 before closing just below that milestone at 6,978.03, reflecting a broader trend of market resilience despite the Fed's steady stance. Treasury yields rose following the Fed's announcement, indicating confidence in ongoing economic expansion.
The implications of gold's rise and mixed stock market reactions reflect ongoing investor caution amid global uncertainties. As gold continues to attract attention as a safe haven, its trajectory will likely influence market sentiment in the coming weeks.