On January 27, the international precious metals market witnessed an explosive rally, with spot gold prices breaking historical peaks and intraday volatility expanding significantly. At the New York close, spot gold rose by 3.52% to a high of $5,187.37 per ounce, then pulled back during the Asian session, falling below $5,160 per ounce with an intraday decline of 0.42%, indicating fierce long-short competition. COMEX gold futures strengthened in tandem, with the April contract rising 3.45% to $5,217.30, briefly touching a high of $5,225.80.
The silver market experienced even greater fluctuations. New York silver futures surged 6.66% intraday to break through $113 per ounce, then quickly pulled back below $111, narrowing the intraday gain to 4.73%, while spot silver even turned from gain to loss by 0.88%. The core driver behind the strength in precious metals lies in economic and geopolitical uncertainties, coupled with the US dollar index falling to a nearly four-year low, prompting investors to flock to safe-haven assets. Hong Kong’s gold and precious metals sector performed strongly in sync, with Zijin Gold International closing up 11.59%, and A-share gold stocks also extending gains, with Zhaojin Gold and Hunan Gold hitting new highs. In the short term, attention should be paid to the impact of the Federal Reserve’s interest rate decision on risk aversion sentiment.