Gold Tops $5,000 as Safe-Haven Demand Surges
Gold rose above $5,000 an ounce for the first time on Monday, extending a sharp rally driven by a weaker US dollar, rising geopolitical uncertainty, and growing investor demand for safe-haven assets. The move followed a strong week in which gold recorded one of its biggest weekly gains in years. Silver also climbed to a new record high.
- Gold rose above $5,000 an ounce for the first time, with silver also hitting record highs
- A weaker US dollar and rising geopolitical risks are driving safe-haven demand
- Investors are increasingly shifting away from currencies and bonds toward hard assets
Dollar weakness boosts precious metals
The rally was reinforced by a sharp decline in the US dollar. The Bloomberg Dollar Spot Index posted its largest weekly drop since May, making dollar-priced commodities more attractive to global buyers. Currency weakness has become a key tailwind for precious metals, particularly as investors reduce exposure to major fiat currencies.
Investors are increasingly focused on political and policy risks in the United States. Actions taken by the administration of Donald Trump, including public pressure on the Federal Reserve and heightened geopolitical rhetoric, have unsettled markets.
These developments have contributed to a shift away from government bonds and currencies toward assets seen as more resilient in periods of uncertainty.
Gold’s longer-term rally gains momentum
Gold has more than doubled in price over the past two years and is now up around 15% so far this year, following its strongest annual performance since the late 1970s. Analysts say the current move reflects a broader “debasement trade,” where investors seek protection against currency erosion, fiscal risk, and declining confidence in sovereign debt.
Attention is now on the upcoming decision for the next Federal Reserve chair. Trump has said interviews are complete and that a candidate has been chosen. Expectations that future Fed leadership could support additional interest-rate cuts have further supported gold prices, as lower rates tend to favor non-yielding assets.
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Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
