Gold costs surged past $5,000 per ounce for the first time late Sunday, as buyers rushed to the safe-haven asset as concern unfold that US President Donald Trump is upending relations with key allies, from Europe to Canada.
In this yr’s first 26 days, the worth of gold has jumped 15%; a historic rally that builds on a record-breaking year in 2025, when costs skyrocketed 65% – the largest annual achieve since 1979.
Gold is usually seen as a refuge in unsure occasions and a barometer of market nervousness. And this newest surge has been pushed by a collection of market-destabilizing international and home strikes by Trump –– from the now-revoked tariff threats against NATO allies over Greenland, to the army operation in opposition to Venezuela, and the criminal investigation into Federal Reserve Chair Jerome Powell.
Demand has additionally been pushed by a weaker US greenback, higher-than-expected inflation, predictions the Fed will additional minimize rates of interest this yr, and the buy of the treasured metallic by central banks round the world.
Gold was up 1.4% Sunday to $5,058 a troy ounce, as of 8:14 pm ET.
Silver, one other safe-haven asset surging in worth, rose 4.5% to $107.8 an oz. Sunday. Like Gold, Silver final yr additionally recorded its finest efficiency since 1979, with a 141% worth improve.
Despite hitting the $5,000 benchmark, analysts remained largely bullish on gold, arguing costs may rise additional as uncertainty persists.
Before the record rally, Goldman Sachs analysts had raised their forecasts of gold costs to $5,400 per troy ounce, citing personal sector buyers’ pursuits in the yellow metallic on account of “lingering global policy uncertainty,” in line with a analysis word revealed by the funding financial institution final week.
Others noticed much more room for beneficial properties. Bank of America’s chief funding officer Michael Hartnett stated in a analysis word final week that gold costs may peak above $6,000.
Less than one month into 2026, Trump’s coverage whiplash has fueled geopolitical uncertainty and rattled markets, pushing buyers to guess on treasured metals.
Gold costs jumped following the US seize of Venezuelan President Nicolás Maduro and Trump’s risk in opposition to the Iranian regime amid a bloody crackdown on protesters.
Trump additionally ramped up his rhetoric about annexing Greenland and threatened to reigniting a international commerce battle with tariffs on European allies that opposed his plans of buying the Danish territory. Even although Trump abruptly backed down and claimed a deal was reached on Wednesday, markets remained unsettled by the White House’s unpredictability.
Then on Saturday, Trump threatened to slap 100% tariffs on Canadian imports ought to the US neighbor make a commerce cope with China – one thing Ottawa has stated it has “no intention” of doing.
Domestically, the US President has additionally renewed assaults on Powell, the Fed chair. Federal prosecutors opened a felony investigation into him earlier this month, throwing into query the political independence of the central financial institution.
Together, these developments have unnerved buyers, accelerating a flight into treasured metals.