The price of gold has reached above US $ 5,000 per ounce for the first time. This sharp rally is being fueled by factors such as US President Donald Trump’s restructuring of international relations and investors fleeing from government bonds and currencies. Geopolitical risks and US dollar weakness have further strengthened the demand for gold. The dollar index posted its biggest weekly decline since May, making the precious metal cheap for most buyers. Silver also reached a record high after crossing $100 an ounce in the previous session.
gold becomes the measure of fear
With its dramatic surge more than doubling over the past two years, gold is underscoring its role as a historic barometer of fear in the markets. Coming off its best annual performance since 1979, it has gained more than 15% so far this year. This is largely due to the so-called ‘currency devaluation’ (debasement) trade, in which investors are retreating from currencies and Treasury bonds. Last week’s massive selloff in the Japanese bond market is the latest example of investors rejecting massive fiscal spending.
Trump’s actions increased uncertainty
In recent weeks, actions by the Trump administration such as attacks on the independence of the Federal Reserve, threats to annex Greenland, and military intervention in Venezuela have also spooked the markets. For investors willing to deal with this uncertainty, gold’s safe haven appeal has rarely been more attractive.
Fear of inflation and debt gave boost
Beyond geopolitics, rising public debt in developed economies has become another key pillar of gold’s rally. Some long-term investors, who believe that inflation will become the only path to state solvency, are turning capital into gold as a way of maintaining purchasing power.
Major investors had warned
This currency devaluation trade reached its peak in late 2025, when prominent investors like Citadel Securities CEO Ken Griffin and Bridgewater Associates founder Ray Dalio pointed to gold’s surge as a warning sign.
Keeping an eye on the appointment of Fed Chair
Investors are now waiting for Trump’s choice for Fed Chairman. The US President has said that he has completed interviews of candidates and has someone in mind for the post. After three consecutive rate cuts, the chairman taking a more dovish stance will increase the chances of further rate cuts this year, which is positive for non-interest bearing gold bullion.
what was the price today
By 8:12 a.m. in Singapore, gold was up 1% at $5,035.25 an ounce, according to Bloomberg. Silver rose 2.2% to $105.50. Platinum fell marginally after touching record high, while palladium gained. The Bloomberg dollar spot index was down 0.2% after falling 1.6% last week.