Gold sets record high at $5,247.21/oz
US dollar sinks to four-year lows
Trump brushes off dollar weakness, calling it "great"
Updates prices, adds graphics for Asia morning session
By Ishaan Arora
Jan 28 (Reuters) - Gold broke through $5,200 for the first time on Wednesday, after rising more than 3% on Tuesday, as the dollar plunged to a near four-year low amid persisting geopolitical concerns, ahead of a U.S. Federal Reserve monetary policy decision.
Spot gold XAU= jumped 1.1% to $5,243.58 per ounce, as of 0314 GMT, after scaling a record high of $5,247.21 earlier, up more than 20% since the start of the year.
U.S. gold futures GCcv1 for February delivery surged 3.1% to $5,237.70 per ounce.
"(Gold's rise) is due to the very strong indirect correlation with the dollar and yesterday's price-rise in gold in the U.S. session was due to Trump's remark to a casual question about the dollar which implied that (there is) a broad-based consensus within the White House to have a weaker greenback going forward," said Kelvin Wong, a senior market analyst at OANDA.
The U.S. dollar was grappling with a "crisis of confidence" as it struggled near four-year lows, exacerbating dollar selling, after President Donald Trump said the currency's value is "great" when asked whether he thought it had declined too much. USD/
U.S. consumer confidence, meanwhile, slumped to its lowest level in more than 11-1/2 years in January amid mounting anxiety over a sluggish labor market and high prices.
Trump added that he will soon announce his pick to serve as head of the U.S. central bank, and predicted interest rates would decline once the new chair takes over.
The Fed is widely expected to hold rates steady at its January monetary policy meeting, currently underway. FEDWATCH
Wong added that near-term resistance for gold could be seen around $5,240/oz. Deutsche Bank said on Tuesday that gold could climb to $6,000 per ounce in 2026, citing persistent investment demand as central banks and investors increase allocations to non-dollar and tangible assets.
Spot silver XAG= was up 1.9% at $115.11 an ounce, after hitting a record high of $117.69 on Monday. The white metal has already jumped almost 60% so far this year.
Spot platinum XPT= gained 2% to $2,692.60 per ounce after hitting a record $2,918.80 on Monday, while palladium XPD= was up 1.4% at $1,961.68.
Gold's blistering rally sees it past $5,200 for the first time https://tmsnrt.rs/4ahABMu
(Reporting by Ishaan Arora in Bengaluru; Editing by Alan Barona and Rashmi Aich)
((Ishaan.Arora@thomsonreuters.com))
