Gold hit a new all-time high on January 12, extending its sharp rally amid escalating geopolitical tensions and uncertainty tied to the U.S. Federal Reserve.
Shortly before the time of writing, the price of gold jumped as much as 2% on the daily chart to break above $4,600 an ounce and push the figure up roughly 6% year to date.
According to artificial intelligence (AI) models, the momentum is unlikely to fade before the end of the month, as renewed risk reinforces demand for safe-haven assets.
AI gold price prediction for January 31, 2026
OpenAI’s leading large language model (LLM), ChatGPT, forecasts gold to trade as high as $5,000 per ounce by the end of the month, albeit on the condition that there are no meaningful improvements in global risk sentiment.
That is, the model argues that recent record highs are supported by a mix of safe-haven demand, expectations for easier monetary policy, and heightened uncertainty around central bank leadership.
Should risk sentiment improve or policy fears ease, the AI reasoned, the price could pull back toward $4,300.
Still, ChatGPT noted that potential pullbacks would likely signal a correction phase rather than break the overall rising trend. In other words, it sees the outlook as ‘firmly bullish,’ with the prices likely to ‘stay elevated’ throughout the month.
Will gold hit $5,000?
A major factor in the gold price debate, and the one cited by ChatGPT, is the ongoing criminal investigation into Federal Reserve Chair Jerome Powell, which has stirred fears over the independence of the U.S. central bank.
The probe, which focuses on a $2.5 billion renovation of the Fed’s Washington headquarters, suggests to some traders that political pressure could influence the Fed’s decision-making.
Most notably, investors are wondering whether regulatory scrutiny could hasten leadership changes at the Fed or shift policy toward more aggressive interest-rate cuts.
This would likely be a plus for gold since lower rates reduce the opportunity cost of holding a non-yielding asset.
At the same time, ongoing unrest in Iran and Venezuela has further fueled demand for bullion as a hedge against broader uncertainty, which could prove a major catalyst for another rally.
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