Gold prices have surged above $5,000 an ounce for the first time, driven by escalating uncertainty and volatility under the Trump administration. The record high was reached on Monday morning before easing back slightly, with gold settling at $5,091 - a 2.2% gain.
The jump in gold prices has been fueled by concerns over Trump's chaotic policies, including his recent threat to Canada with 100% tariffs if they make a deal with China, and his showdown with Europe over the future of Greenland. These developments have created an atmosphere of heightened anxiety on international financial markets.
Gold has become increasingly attractive as investors seek safe havens from stocks and bonds that are heavily influenced by Trump's erratic policy shifts. Analyst Ross Norman notes that "there has been a vaporising of trust" in the US administration, leading to a movement away from the dollar and dollar assets. He predicts gold will reach $6,400 an ounce this year, with an average price of $5,375 over 2026.
The rise in gold prices is being driven by concerns that Trump's administration may weaken the US dollar to boost domestic manufacturing. A weaker dollar would undermine the value of US Treasury bonds, making gold a more attractive alternative as a store of value. Analyst Steve Miller describes the jump as "the most spectacular" he has seen in his 40 years in financial markets.
Another factor contributing to the surge in gold prices is Japan's new administration, led by Prime Minister Sanae Takaichi. She has pledged to cut taxes to address spiralling food costs, which has sparked concerns among international investors about the impact on Japan's already high debt levels - equivalent to 230% of its economy.
The yen has recovered some of its value against the dollar after speculation that the US Federal Reserve had intervened to buy the currency. However, analysts believe that the Fed may still take steps to weaken the dollar to achieve its policy goals.
The jump in gold prices has been fueled by concerns over Trump's chaotic policies, including his recent threat to Canada with 100% tariffs if they make a deal with China, and his showdown with Europe over the future of Greenland. These developments have created an atmosphere of heightened anxiety on international financial markets.
Gold has become increasingly attractive as investors seek safe havens from stocks and bonds that are heavily influenced by Trump's erratic policy shifts. Analyst Ross Norman notes that "there has been a vaporising of trust" in the US administration, leading to a movement away from the dollar and dollar assets. He predicts gold will reach $6,400 an ounce this year, with an average price of $5,375 over 2026.
The rise in gold prices is being driven by concerns that Trump's administration may weaken the US dollar to boost domestic manufacturing. A weaker dollar would undermine the value of US Treasury bonds, making gold a more attractive alternative as a store of value. Analyst Steve Miller describes the jump as "the most spectacular" he has seen in his 40 years in financial markets.
Another factor contributing to the surge in gold prices is Japan's new administration, led by Prime Minister Sanae Takaichi. She has pledged to cut taxes to address spiralling food costs, which has sparked concerns among international investors about the impact on Japan's already high debt levels - equivalent to 230% of its economy.
The yen has recovered some of its value against the dollar after speculation that the US Federal Reserve had intervened to buy the currency. However, analysts believe that the Fed may still take steps to weaken the dollar to achieve its policy goals.
Is it really better to invest in gold over stocks and bonds? I guess if you want a safe bet, but it's like putting all your money into one basket... what if the market swings again? 
I'm low-key hyped about gold prices reaching $5k an ounce!!! It's like, totally legit that investors are flocking to gold as a safe haven from Trump's crazy policies 
and volatile markets 
Prime Minister Sanae Takaichi is trying to cut taxes and tackle food costs, but it sounds like they're gonna struggle with debt levels 
️, it's like a game of economic chess out there! 
Anyway, $6k an ounce by 2026? Ross Norman is a genius 
! 
but seriously though japan's new gov is gonna make some changes that'll affect their economy too, maybe we should keep an eye on those debt levels 
and if trump's plans for a weaker dollar go through... watch out for the stock market 
. Japan's new admin is also causing some unease with their tax cuts and high debt levels...not sure how that's gonna play out. Gold as a safe haven makes sense though - it's like a trusty old friend when the markets get all wobbly 
. And Japan's new admin? They're cutting taxes to address food costs, but that's just going to make their debt levels even worse 
.
. It's no wonder investors are fleeing to gold 
!
The world is really crazy with Trump's policies right now 
. And this showdown over Greenland? Who cares about some frozen land in the middle of nowhere 
? It just means more uncertainty for investors and a rush to safe havens like gold 
.
with their tax cuts and debt concerns 
. I'm just waiting to see how all this plays out... it's gonna be interesting