Gold record $5,000 mark on Trump policy uncertainty
Gold surged past the historic $5,000-an-ounce mark on Sunday, hitting a fresh record as global investors rushed to safe-haven assets amid growing political and economic uncertainty linked to US President Donald Trump’s policies.
The precious metal climbed to $5,026 an ounce in trading, while silver also rallied sharply, crossing $102 an ounce for the first time late last week. The latest surge caps a dramatic run for gold, which was trading just above $2,000 an ounce in January 2024.
Analysts said renewed volatility surrounding Trump’s foreign policy ambitions, pressure on the US Federal Reserve and fears of escalating trade disputes have boosted demand for gold. Uncertainty over Washington’s stance on Greenland, along with concerns about US intervention in Venezuela and ongoing wars in Ukraine and Gaza, have further unsettled markets.
“Gold’s recent moves show classic safe-haven behaviour,” said Fawad Razaqzada, a market analyst at Forex.com, noting that investor confidence in the US dollar and government bonds has weakened.
The dollar slid to a four-month low against the euro following Trump’s tariff threats against several European countries, even though he later softened his stance. Investors also remain wary ahead of the Federal Reserve’s policy meeting, after US prosecutors took steps that raised questions about the central bank’s independence and the position of Fed Chair Jerome Powell.
According to the World Gold Council, global gold demand by value jumped 44 percent year-on-year to a record $146 billion in the third quarter of last year, with strong inflows into gold-backed exchange-traded funds adding momentum to the rally.
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