Gold Plunges 5% After Hitting $5,500 as Volatility Sparks “Dangerous Phase” Warning

Gold prices collapsed 5% on Thursday, January 29, 2026, retreating from an intraday record above $5,500 to $5,184 in London trading. Despite remaining 3% above Wednesday’s close, the whipsaw move underscores extreme commodity market volatility amid weakening dollar sentiment and geopolitical tensions. Analysts warn of speculative excess. Ole Hansen of Saxo Bank called the rally “dangerous,” citing fear-of-missing-out dynamics pushing prices beyond fundamentals. Gold has surged nearly 100% over the past year; silver jumped 285%. Copper spiked 10% to $14,400/ton — its sharpest rise since 2009 — while oil hit a 7-month high after Trump threatened Iran. Bitcoin fell 7% to $83,653 as tech stocks sold off, led by Microsoft’s 12% drop following earnings.