NEW YORK, Jan. 30, 2026 — Gold prices slipped below the $5,000 mark on Thursday, easing from record highs as the U.S. dollar gained and traders locked in profits after a historic rally. The move followed weeks of sharp gains that pushed bullion to unprecedented levels, even as monthly performance remained among the strongest seen in decades.

Spot gold fell 5.7 percent to $5,087.99 an ounce after touching an intraday low of $4,957.54. U.S. gold futures for February delivery declined 4.6 percent to $5,081.70. The retreat came after prices peaked at $5,594.82 earlier in the week, capping a rapid ascent driven by heavy investment flows and speculative interest.

Rally Pauses After Historic Run

The pullback marked a pause rather than a reversal after gold recorded its sixth straight monthly gain. Prices are on track for a rise of about 17 percent in January, the strongest monthly performance since the early 1980s. Market participants described the decline as a correction, with traders reassessing exposure after prices moved sharply higher in a short span.

Analysts said the speed of the rally left gold vulnerable to sharp swings. Large funds and short-term traders trimmed positions, adding to selling momentum during Asian and European trading hours. Even with the decline, gold remains far above levels seen late last year, underscoring the scale of the rally that preceded the drop.

Dollar Gains Shift Market Focus

Markets turned their focus to the dollar after President Donald Trump selected former Federal Reserve Governor Kevin Warsh to lead the central bank. The choice reinforced expectations of a stricter policy stance, lending support to the currency and tempering demand for dollar-denominated assets such as gold.

The currency move shifted attention away from bullion’s recent rally and toward interest rate expectations, prompting traders to reassess near-term positioning.

Fed Chair Pick Shapes Currency Outlook: Governor Warsh is viewed by investors as inclined toward stricter policy settings, a perception that strengthened the dollar and altered trading sentiment. A firmer currency makes gold more expensive for buyers using other currencies, which can restrain demand during periods of adjustment.

Traders said the announcement acted as a catalyst for profit-taking rather than a fundamental shift in gold demand. Currency moves, rather than changes in physical buying, accounted for much of the immediate reaction in bullion prices.

Interest Rate Expectations Return to Fore: The dollar’s move also reflected renewed attention on interest rate policy. Expectations that rates could remain elevated for longer encouraged a shift toward the currency and away from commodities in the short term.

Several banks maintained forecasts that place average gold prices above $5,300 this year, with some projecting further gains later in the year. Those projections suggest that the latest decline reflects repositioning rather than fading interest in gold as an investment asset.

Other Metals See Sharp Pullbacks

The selloff spread across the precious metals complex, where recent gains had also been pronounced. Spot silver dropped 14.1 percent to $99.79 an ounce after reaching a record $121.64 earlier in the week. Platinum slid 12.6 percent to $2,298.76 after touching $2,918.80, while palladium fell 9.3 percent to $1,819.75.

Market participants pointed to speculative excess across several metals, which amplified price moves once selling began. Volatility increased as leveraged positions were unwound, leading to rapid intraday swings. Despite the declines, analysts said demand linked to investment and industrial use continues to support longer-term price expectations.

Physical Demand Offers Support

Physical buying remained firm, particularly in Asia. In India, premiums climbed to their highest level in more than a decade as buyers moved ahead of a possible increase in import duties. Jewelers and investors stepped in during the dip, seeking to secure metal after weeks of elevated prices.

China also saw sustained demand for investment bars and jewelry, according to traders. These flows helped limit losses and reinforced the role of physical markets in shaping global bullion pricing. Observers said buying interest in these regions continues to support gold even during periods of sharp price movement on futures exchanges.

Gold’s slide below $5,000 highlights how quickly sentiment can shift after a record-breaking rally. Dollar gains and profit-taking combined to pull prices lower, yet the broader picture still reflects strong monthly performance and resilient demand. As markets await further clarity from the Federal Reserve, gold remains closely watched as investors balance short-term moves against longer-term expectations.