Gold surged beyond $5 000 an ounce for the first time, extending a breakneck rally fueled by US President Donald Trump\u2019s reshaping of international relations and investor flight from sovereign bonds and currencies.<\/p>\n
Read: Gold rises toward $5 000<\/p>\n
Bullion climbed more than 2% to around $5 093 as dollar weakness reinforced demand. A gauge of the US currency has fallen almost 2% in six sessions, with speculation that the US may assist Japan in efforts to boost the yen adding to worries over Federal Reserve independence and Trump\u2019s erratic policymaking.<\/p>\n
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Silver also advanced more than 6% to a record high, having crossed $100 an ounce in the previous session in a rally supported by strong demand from retail buyers from Shanghai to Istanbul.<\/p>\n
Gold\u2019s dramatic gains \u2013 the metal has more than doubled over the last two years \u2013 drives home bullion\u2019s historic role as a gauge of fear in markets. Fresh from its best annual performance since 1979, it\u2019s risen more than 17% so far this year due largely to the so-called debasement trade, whereby investors retreat from currencies and Treasuries. A massive selloff in the Japanese bond market last week is the latest example of investors rejecting heavy fiscal spending.<\/p>\n
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Read: Resources rally takes JSE to new high<\/p>\n
In recent weeks, the Trump administration\u2019s actions \u2014 attacks on the Fed, threats to annex Greenland, military intervention in Venezuela \u2014 have spooked markets. For investors looking to navigate this uncertainty, the haven appeal of gold has rarely been more attractive.<\/p>\n
\u201cGold is the inverse of confidence,\u201d said Max Belmont, a portfolio manager at First Eagle Investment Management. \u201cIt\u2019s a hedge against unexpected bouts of inflation, unanticipated drawdowns in the market, flare-ups in geopolitical risk.\u201d<\/p>\n
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Over the weekend, Trump threatened Canada with 100% tariffs on all its exports to the US if Ottawa makes a trade deal with China, escalating bilateral tensions. Meanwhile, political uncertainties within the US remain high as Senate Democratic leader Chuck Schumer vowed to block a massive spending package unless Republicans strip funding for the Department of Homeland Security \u2014 increasing the risk of a partial government shutdown.<\/p>\n
Swelling public debt in advanced economies has become another key pillar of gold\u2019s rally. Some long-term investors, convinced that inflation will become the only path to state solvency, have piled into gold as a way to preserve purchasing power.<\/p>\n
\u201cPeople have become a lot more worried about the long-term debt trajectory over the past three years,\u201d said John Reade, chief strategist at the World Gold Council. \u201cThe place that I have found the debasement and debt arguments come through the most has been with family offices. They\u2019re thinking about generational wealth protection, rather than the short term.\u201d<\/p>\n
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This debasement trade reached its zenith in late 2025, when prominent investors like Citadel\u2019s Chief Executive Officer Ken Griffin and Bridgewater Associates Founder Ray Dalio pointed to gold\u2019s rise as a warning signal.<\/p>\n
Investors are now waiting for Trump\u2019s pick for the next Fed chair after the US president said he has finished interviewing candidates, reiterating that he has someone in mind for the job. A more dovish chair would increase bets on further interest-rate cuts this year \u2014 a positive for non-yielding bullion \u2014 after three successive reductions.<\/p>\n
Read: Gold falls after Trump backs away from tariffs over Greenland<\/p>\n
\u201cMany of the current Trump-induced geopolitical uncertainties are unlikely to go away anytime soon,\u201d said Vasu Menon, managing director of investment strategy at Oversea-Chinese Banking Corp Ltd. That means \u201cgold could remain in play in the coming months and even years, although investors must brace for intermittent pullbacks after the strong gains in the past 12 months.\u201d<\/p>\n
Gold rose 1.8% to $5 076.23 an ounce as of 12:15 p.m. in Singapore. Silver advanced 4.9% to $108.22. Platinum climbed to a record high and palladium also rose. The Bloomberg Dollar Spot Index was down 0.4% after losing 1.6% last week.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
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