Gold prices shattered records on Wednesday, breaching the $5,200 per ounce level for the first time, propelled by a sharply weakening U.S. dollar and enduring geopolitical uncertainty. The rally comes as investors await the conclusion of a U.S. Federal Reserve policy meeting.

Spot gold jumped 1.1% to $5,243.58 per ounce by mid-morning GMT, after hitting a new all-time peak of $5,247.21. The precious metal has now soared more than 20% since the beginning of the year. U.S. gold futures followed suit, rising 3.1% to $5,237.70.

Analysts attribute the surge primarily to a "crisis of confidence" in the U.S. dollar, which tumbled to near four-year lows. The decline accelerated following remarks from President Donald Trump, who, when questioned about the currency's slide, described its value as "great"—a comment markets interpreted as tacit endorsement of a weaker greenback.

"The very strong indirect correlation with the dollar... yesterday’s price-rise in gold in the U.S. session was due to Trump’s remark," said Kelvin Wong, a senior market analyst at OANDA, noting the implication of a White House consensus for a softer dollar.

Market sentiment was further weighed down by data showing U.S. consumer confidence plunged to an 11.5-year low in January, reflecting anxiety over the labor market and high prices.

While the Fed is widely expected to hold interest rates steady at its current meeting, Trump added to the monetary policy uncertainty by stating he would soon announce his pick for Fed chair and predicting rates would fall under new leadership.

Looking ahead, analysts see immediate technical resistance for gold around $5,240 per ounce. The bullish outlook remains robust, with Deutsche Bank forecasting a potential climb to $6,000 in 2026, citing sustained investment demand as central banks and investors diversify into tangible, non-dollar assets.

Other precious metals also advanced. Spot silver rose 1.9% to $115.11 an ounce, having already gained nearly 60% this year. Platinum and palladium also posted gains, continuing their recent record-breaking momentum.