Gold price today hit record high with biggest one-day dollar jump ever - what's fueling the historic rally

Gold price biggest one-day dollar gain: Gold stunned markets on Wednesday with the biggest one-day dollar jump in its history, rising $235 an ounce higher as investors rushed into hard assets amid a tumbling US dollar, as per a report.

Gold price posts biggest one-day dollar gain in history

Front-month Comex gold futures surged 4.3% to settle at a record $5,301.60 per ounce, marking the metal’s largest single-day dollar gain ever and its biggest percentage advance since March 24, 2020, as per a Seeking Alpha report.

Gold futures settle above $5,300 after historic rally

The rally capped a seven-day winning streak, during which gold has climbed 15.5%, and prices continued to rise after hours, briefly topping $5,400 even after the Federal Reserve held interest rates steady.

Weak US dollar drives investors toward gold

The explosive move came as the US dollar index slid to a four-year low earlier in the week and posted its steepest one-day drop since last year’s tariff rollout.

Trump’s dollar comments unsettle currency markets

Currency markets were rattled after US president Donald Trump said the dollar was “doing great” and had not weakened excessively, comments that investors interpreted as validating the greenback’s sharp recent decline.

While the dollar stabilized on Wednesday after Treasury Secretary Scott Bessent said the administration supports a stronger currency, precious metals continued to soar.

Analysts said the weaker dollar and rising uncertainty have pushed investors toward gold. FP Markets chief analyst Aaron Hill said "While a softer USD benefits exporters - it costs foreign buyers less to purchase dollars - it can increase inflationary pressures," adding, "The issue right now is Trump's unpredictability. From threatening tariffs to designs on Greenland, his actions continue to rattle the markets, prompting investors to reduce exposure to U.S. assets. This adds fuel to USD downside and could ultimately bolster inflation," as quoted by Seeking Alpha.

Central bank demand continues to fuel gold rally

Gold’s rally has also been fueled by longer-term forces. Central banks have steadily shifted reserves away from dollar-based assets and into gold since sanctions were imposed on Russia in 2022, while worries about the dollar, interest-rate policy and expensive equities have reinforced the trend, as per a WSJ report.

Deutsche Bank forecasts gold price at $6,000

Deutsche Bank analysts said gold prices could reach $6,000 an ounce this year in a weak-dollar environment, citing persistent investment demand and rising allocations to non-dollar and real assets.

Silver prices jump to second-highest level on record

Silver joined the surge, with January Comex silver futures jumping 7.2% to $113.111 an ounce, the metal’s second-highest settlement value on record, and extending gains after the regular session.

US stock markets end mixed after Fed decision

The historic gold rally unfolded even as broader markets were relatively calm. Stocks finished mixed after the Fed’s rate decision, with the Dow Jones Industrial Average edging up less than 0.1%, the S&P 500 slipping slightly, and the Nasdaq composite rising 0.2%. The 10-year Treasury yield settled at 4.25%.

FAQs

Why did gold jump more than $220 in one day?

Gold surged as the US dollar weakened sharply, pushing investors toward hard assets.

How high did gold futures close on Wednesday?

Front-month Comex gold futures settled at a record $5,301.60 per ounce.