Gold prices surged to a record on Tuesday as the dollar slid to its lowest level in nearly four years ahead of a Federal Reserve policy announcement, while global equities extended a rally driven by strong earnings and easing financial conditions.

Spot gold rose 3.19% to $5,174.09 an ounce after hitting an intraday record of $5,186.59, supported by heightened geopolitical tensions and a weaker dollar. Spot silver jumped 7.93% to $121.13 an ounce, after reaching a record $117.69 on Monday.

Analysts at Goldman Sachs said they see “meaningful upside risk” to their forecast of gold reaching $5,400 by December, while Deutsche Bank said $6,000 “is achievable with a weaker dollar this year.”

The dollar index, which tracks the greenback against a basket of major currencies, fell 0.9% to 96.23 and was on track for its biggest daily percentage drop since April. The index earlier touched 95.566, its lowest level in nearly four years. The euro rose 0.81% to $1.1975, sterling climbed 1.14% to $1.3833 and the dollar weakened 1.23% against the yen to 152.26, its lowest level since late October.

“The dollar has had over the past 10 days one of the biggest moves it’s had in the past five years,” said Adam Rich, deputy chief investment officer at Vaughan Nelson Investment Management in Houston. “It puts huge pressure on commodities, and we’re seeing oil up and commodities up, with stocks moving aggressively higher.”

The yen’s gains followed renewed speculation about possible joint U.S.-Japan intervention to halt its recent slide, after chatter about rate checks by the New York Fed and the Bank of Japan. The currency had earlier been under pressure amid concerns over Japan’s government debt following Prime Minister Sanae Takaichi’s rise to office and her push for expanded stimulus ahead of elections.

Markets are awaiting the Fed’s policy statement due Wednesday, with expectations firmly centered on rates being left unchanged, according to CME’s FedWatch Tool. However, uncertainty surrounds the meeting amid the nomination of a potential replacement for Fed Chair Jerome Powell, an effort to remove Governor Lisa Cook and a criminal investigation into the central bank chief by the Trump administration.

Markets rally globally

Global equities rose for a fifth straight session. MSCI’s world stock index climbed 0.85% to 1,053.09 and touched an intraday record of 1,053.88, marking its longest winning streak this year. Europe’s STOXX 600 gained 0.58%, helped by a 1.8% jump in bank shares.

On Wall Street, the S&P 500 and Nasdaq ended higher, with the S&P logging a record close, as investors digested a wave of earnings releases. The Dow Jones Industrial Average fell 408.99 points, or 0.83%, to 49,003.41, weighed down by a 1.6% drop in Boeing and a nearly 20% plunge in UnitedHealth after the insurer forecast a revenue decline in 2026. The UnitedHealth slide accounted for about 420 points of downside pressure on the Dow.

Health insurers broadly declined after the U.S. government proposed lower-than-expected Medicare reimbursement rates for 2027. Boeing and United Parcel Service were also in focus after UPS said it would cut up to 30,000 operational jobs this year.

The S&P 500 rose 28.37 points, or 0.41%, to 6,978.60, while the Nasdaq Composite gained 215.74 points, or 0.91%, to 23,817.10.

Investors are also bracing for earnings later this week from members of the so-called Magnificent Seven, including Microsoft, Apple, Tesla and Meta Platforms.

In Asia, South Korea moved to reassure Washington of its commitment to a trade deal after President Donald Trump threatened to raise tariffs on autos and other imports, citing delays in implementation. The Korean won strengthened 0.97% to 1,431.85 per dollar.

Oil prices climbed as supply disruptions lifted energy markets. U.S. crude settled up 2.9% at $62.39 a barrel, while Brent crude rose 3.02% to $67.57. Producers were responding to a winter storm that curtailed output and halted U.S. Gulf Coast crude exports over the weekend.