Gold Hits Record High Above $5,000 an Ounce Amid Trump Turmoil and Global Market Jitters.
The price of gold has surged above $5,000 an ounce for the first time in history, driven by Donald Trump's chaotic policies and proclamations that are causing investors to seek safe haven in the precious metal. On Monday morning, gold reached a record high of $5,100, before easing back to settle at $5,091, up 2.2% from Friday.
The surge in gold prices is part of an extraordinary run for the metal, which has jumped by almost 90% since Trump's second inauguration over a year ago. Investors are flocking to gold as a safe haven from stocks and bonds that are heavily influenced by the US president's erratic policy shifts. "There has been a vaporizing of trust," said Ross Norman, an independent analyst. "And it takes a while to win back that trust, which is why in the meantime we are seeing a movement away from the dollar and dollar assets."
Trump's policies have sparked concerns about the future of international trade and currency, with his administration threatening Canada with 100% tariffs if Ottawa makes a deal with China. The US president's showdown with Europe over Greenland has also added to market volatility.
The rise in gold prices is also being fueled by rising fears of another US shutdown after Democrats threatened funding for the Department of Homeland Security following federal immigration agents killed a man in Minneapolis on Saturday. With global financial markets already jittery, investors are seeking safe havens and turning to gold as a way to hedge against risk.
Analysts predict that gold will continue to rise this year, with some forecasting a high of $6,400 an ounce. "The only certainty at the moment seems to be uncertainty, and that's playing very much into gold's hands," said Norman.
In Japan, concerns about the country's debt and budget have also sparked market volatility. Tokyo's new administration has pledged to cut taxes to make spiraling food costs more affordable, but this has spooked international investors who fear the campaign promise will have a similar effect as Liz Truss's 2022 mini-budget in the UK.
The Japanese yen recovered some of its value against the dollar on Monday after speculation that the US Federal Reserve had used some of its vast resources to buy the currency. However, analysts say that a weaker dollar is likely to continue to benefit gold prices, as it would undermine the value of US mainstay assets such as Treasury bonds.
The US central bank is set to meet on Tuesday and Wednesday to consider its next move on interest rates amid mounting pressure from the White House to reduce borrowing costs. However, Fed officials are expected to hold rates steady this week, with some analysts predicting that the dollar will continue to fall in value in 2026 as the Fed accelerates cuts to interest rates.
The price of gold has surged above $5,000 an ounce for the first time in history, driven by Donald Trump's chaotic policies and proclamations that are causing investors to seek safe haven in the precious metal. On Monday morning, gold reached a record high of $5,100, before easing back to settle at $5,091, up 2.2% from Friday.
The surge in gold prices is part of an extraordinary run for the metal, which has jumped by almost 90% since Trump's second inauguration over a year ago. Investors are flocking to gold as a safe haven from stocks and bonds that are heavily influenced by the US president's erratic policy shifts. "There has been a vaporizing of trust," said Ross Norman, an independent analyst. "And it takes a while to win back that trust, which is why in the meantime we are seeing a movement away from the dollar and dollar assets."
Trump's policies have sparked concerns about the future of international trade and currency, with his administration threatening Canada with 100% tariffs if Ottawa makes a deal with China. The US president's showdown with Europe over Greenland has also added to market volatility.
The rise in gold prices is also being fueled by rising fears of another US shutdown after Democrats threatened funding for the Department of Homeland Security following federal immigration agents killed a man in Minneapolis on Saturday. With global financial markets already jittery, investors are seeking safe havens and turning to gold as a way to hedge against risk.
Analysts predict that gold will continue to rise this year, with some forecasting a high of $6,400 an ounce. "The only certainty at the moment seems to be uncertainty, and that's playing very much into gold's hands," said Norman.
In Japan, concerns about the country's debt and budget have also sparked market volatility. Tokyo's new administration has pledged to cut taxes to make spiraling food costs more affordable, but this has spooked international investors who fear the campaign promise will have a similar effect as Liz Truss's 2022 mini-budget in the UK.
The Japanese yen recovered some of its value against the dollar on Monday after speculation that the US Federal Reserve had used some of its vast resources to buy the currency. However, analysts say that a weaker dollar is likely to continue to benefit gold prices, as it would undermine the value of US mainstay assets such as Treasury bonds.
The US central bank is set to meet on Tuesday and Wednesday to consider its next move on interest rates amid mounting pressure from the White House to reduce borrowing costs. However, Fed officials are expected to hold rates steady this week, with some analysts predicting that the dollar will continue to fall in value in 2026 as the Fed accelerates cuts to interest rates.
$5,100 is a crazy number! I mean, who would've thought gold would hit record high above $5,000 an ounce? It's like investors are saying, "Hey, Trump's antics are all over the place, let's just park our money in something solid" 
. 90% increase since his inauguration is no joke! 
The market's so unpredictable with Trump making decisions left and right, it's a wonder anyone knows what to do anymore 
.
. Just saying 
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. Only time will tell how this whole thing plays out, but one thing's for sure: the markets are never boring 
!
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. And then there's the US shutdown fear - another thing for gold to capitalize on 
$5k is wild! I mean, who would've thought gold could hit that high? 
. Trump's policies are for sure causing some market madness – the tariffs with Canada and Europe have got everyone on edge 
. I mean who wouldn't want to diversify their portfolio by investing in something as timeless and valuable as gold? And let's be real, if the Japanese yen is losing value against the dollar it just means that the US economy is getting stronger 
.
. It's not like anyone needs to be convinced that gold is a good investment when the dollar is taking a hit 
. Can't wait to see what the Fed does next 
$6k+ an ounce? not too shabby 
. one thing for sure, the fed's got some work to do if they wanna stabilize the market 
The only good thing is that gold is like the ultimate insurance policy 
like what's going on with trump lol he's really doing his thing and it's causing everyone to freak out about their money 
omg what's going on with trump?? i think it's super smart of ppl to invest in gold rn, esp since stocks and bonds r so volatile 
it's wild how much $5k+ an oz is now - we're talkin' serious cash 
i've been following this story and every time trump does something crazy, gold just goes through the roof 
and now everyone's like "oh no, we need more gold" 
. Same with investors here - they're all about diversifying their portfolios and playing it safe 
Japan's debt concerns are also causing some issues, which is weird since ppl were expecting a tax cut to help with food costs 
to currency fluctuations 
. The Fed meeting this week is just another reminder that we're living in a world where interest rates are constantly being tweaked 
. And until we have a clear plan to stabilize our global economy, investors will continue to seek safe havens like gold