Gold broke through $5,200 for the first time on Wednesday, as the dollar plunged to a near four-year low amid persisting geopolitical concerns, ahead of a US Federal Reserve monetary policy decision.

Spot gold jumped 1.4% to $5,262.66 per ounce, as of 0558 GMT, after scaling a record high of $5,266.37 earlier. It has gained more than 20% since the start of the year.

US gold futures for February delivery surged 3.4% to $5,255.30 per ounce.

"(Gold's rise) is due to the very strong indirect correlation with the dollar and ... Trump's remark to a casual question about the dollar, which implied that (there is) a broad-based consensus within the White House to have a weaker greenback going forward," said Kelvin Wong, a senior market analyst at OANDA.

The US dollar was grappling with a "crisis of confidence" as it struggled near four-year lows, exacerbating dollar selling, after President Donald Trump said the currency's value is "great" when asked whether he thought it had declined too much.

US consumer confidence, meanwhile, slumped to its lowest level in more than 11-1/2 years in January amid mounting anxiety over a sluggish labour market and high prices.

Trump added that he will soon announce his pick to serve as head of the Fed, and predicted interest rates would decline once the new chair takes over.

Also Read: Dollar staggers near 4-year low

"Given the tension between the Fed's mandates and the White House, I think the markets are just getting defensive ahead of (Fed Chair Jerome Powell's remarks later today)," Ilya Spivak, head of global macro at Tastylive said.

The Fed is widely expected to hold rates steady at its January monetary policy meeting, currently underway.

Wong added that near-term resistance for gold could be seen around $5,240/oz. Deutsche Bank said on Tuesday that gold could climb to $6,000 per ounce in 2026, citing persistent investment demand as central banks and investors increase allocations to non-dollar and tangible assets.

Spot silver was up 2% at $115.40 an ounce, after hitting a record high of $117.69 on Monday. The white metal has jumped almost 60% so far this year.

Spot platinum gained 1.7% to $2,685.16 per ounce after hitting a record $2,918.80 on Monday, while palladium was up 0.7% at $1,946.75.