Gold prices rallied today.
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Gold prices surged past $5,500 on Thursday, January 29, reaching a fresh, all-time high while cryptocurrencies like bitcoin and ether languished.
The world’s most valuable precious metal climbed to roughly $5,588.73 per ounce, according to Kitco data. At this point, it was up close to 30% from the start of 2026.
Bitcoin, on the other hand, is largely unchanged compared to the beginning of this year, Coinbase data from TradingView reveals.
The contrast between these two was illustrated by the price movements that took place following the latest Federal Open Market Committee meeting. Gold prices rallied after the central bank left the target range for the benchmark federal funds rate unchanged, while bitcoin did not.
Several analysts spoke to this development, including Brian Huang, cofounder of fintech firm Glider.
“Today’s lack of movement in stocks and crypto is not surprising–the FED maintaining rates was already priced in,” he stated via email. “What’s pushing gold today (and has been for the past couple weeks) is a growing fear about US stability.”
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“We can see this in FX rates too: EURUSD is up 15% over the past year,” added Huang. “These moves indicate that money is moving out of US dollars into potentially safer assets.”
William Stern, founder of Cardiff, also weighed in, stating that “Gold hitting $5,400 is not a rally. It is a report card on the US Dollar.”
“The Fed refused to cut rates and Gold still hit an all time high,” he said through emailed commentary.
“That means the market does not trust the currency,” said Stern. “Crypto is waiting for a signal but Gold is reacting to reality.”
Government Debt Specter
Greg Magadini, director of derivatives at Amberdata, took a different tack, choosing to focus on the concerns surrounding the global debt burden.
“There’s been massive speculation that the recent move higher in Gold and Silver may be driven by a weakening USD,” he said through emailed commentary.
“Although the USD is weaker, down -15% since Jan 2025, according to the DXY index. Gold is up over +110% and Silver +300% in the same time frame,” the analyst noted.
“If the move in precious metals was only a USD driven response we’d expect other ‘hard assets’ such as BTC, OIL and Real Estate to also follow gold and silver higher,” Magadini continued.
“That said, there’s strong evidence that precious metals are being driven higher for other reasons.”
The market observer went on to emphasize his concerns about Japan’s debt situation.
“The indebted government of Japan has seen the yields in their long dated bonds increase to levels not seen in 30yrs… this loss of confidence of the world’s most indebted country might be the trigger to buy hard assets such as Gold and Silver, as a global debasement hedge (as opposed to a US devaluation hedge),” he noted. “These flows would be executed by central banks and sovereign funds directly.”
Gold Vs. Cryptocurrencies
George Kailas, CEO of Prospero.ai, also emphasized the contrasts between the world’s most valuable precious metal and digital currencies.
“Central banks are buying gold at nearly double the historical rate, we’re talking 800 tonnes a year, while these institutions hold it as a core reserve asset, unlevered, with no intention of selling it into stress,” he stated via email.
“Bitcoin and ether? They’re trading in leverage-heavy derivatives books where the first instinct when volatility spikes is to hit the sell button and raise cash,” the market expert emphasized.
“Gold gets a structural bid from official buyers; crypto gets reflexively sold as a forced liquidation. That’s not opinion, that’s portfolio mechanics,” he continued.
Kailas went on to elaborate on how the Fed’s decision to leave benchmark rates intact has completely different implications for digital assets and the precious metal.
“The Fed saying ‘no change’ doesn’t change gold’s appeal as an insurance policy against policy error and geopolitical tail risk. But for crypto, which needs a catalyst to ignite adoption narratives, a ‘no surprise’ decision leaves the market flat,” he stated.
“It’s two completely different asset classes being treated like they’re the same thing.”