New york: After posting sharp declines, gold prices continued to increase on Wednesday, exceeding $5,000. Spot gold increased around 2.5% as of 0645GMT to reach $5,070 per ounce.

According to Anadolu Agency, on Monday, gold fell below the $4,500 level after US President Donald Trump announced his nomination of former Federal Reserve governor Kevin Warsh as the next Fed chair. Silver prices also saw an increase of 3.7% to $88.2 per ounce.

During January, gold surged 13.2%, marking its best monthly performance since September 1999 amid global geopolitical risks. The US's insistence on purchasing Greenland led to some tensions with Europe. Additionally, the lack of significant changes in Fed policy expectations, along with concerns that the US dollar may lose value, contributed to the rise in gold prices.

Gold started 2026 at $4,313 per ounce and climbed to a record high of $5,598 last week.