Headline: Gold Smashes $5,000/oz for First Time as Safe‑Haven Buying Intensifies — What It Means for Markets (and Crypto) Gold hit an all‑time high this weekend, briefly spiking to about $5,093 per ounce before settling near $5,070 — the first time the metal has cleared the $5,000 barrier. Analysts say the move is part of a broad safe‑haven rally driven by concerns over soaring government debt, geopolitical flashpoints and fears of currency debasement — and that the acceleration looks likely to continue into 2026. Key facts and figures - Peak price: ~$5,093 late Sunday; settled around $5,070. - Momentum: Gold rose more than 60% through 2025, and gains have carried into 2026. - Central bank demand: Official purchases added “hundreds of tonnes” to reserves last year (World Gold Council data). - Historical supply: Roughly 216,265 tonnes of gold have been mined in history — commonly compared to enough metal to fill three to four Olympic pools — and supply is expected to plateau. - Silver: Also broke $100/oz for the first time, after nearly a 150% run last year. Why prices are surging - Safe‑haven flows: Investors are fleeing traditional assets amid mounting fiscal and geopolitical risks. Analysts point to a range of stressors — trade brinkmanship, tariff threats, ongoing wars, and other regional tensions — that have boosted demand for non‑yielding stores of value. - Central banks buying: A sustained shift by central banks into gold is supporting prices and reducing the influence of the U.S. dollar as the sole reserve anchor, according to market research firms. - Breakdown of historical correlations: Normally gold struggles when real interest rates rise because it pays no yield. Economists including Robin Brooks (Brookings Institution, former IIF chief economist) say that relationship has fractured as fiscal‑sustainability worries override traditional valuation signals — “breathtaking and profoundly scary,” in his words. - Rate outlook: Many market participants expect the Federal Reserve to cut rates this year, which lowers the opportunity cost of holding gold and tends to support higher prices. Traders are watching Fed guidance closely. - Fiscal pressure: Big proposed spending plans and rising national debts have raised long‑term funding concerns; some fiscal scenarios could add trillions to deficits, which further bolsters demand for assets seen as inflation or collapse hedges. Voices from the market - Brian Fung (CEO, Hong Kong Gold Exchange) told the South China Morning Post that the structural drivers of gold demand show little sign of fading, supporting further price appreciation in 2026. - Nikos Kavlis (Metals Focus) sees a clear shift away from the U.S. dollar, which is benefiting gold. - Nicholas Frappell (ABC Refinery) notes gold’s diversification value: unlike bonds, it does not carry someone else’s credit risk. - Ahmad Assiri (Pepperstone) highlighted the inverse link between interest rates and gold: lower yields on competing investments make gold more attractive. - Veteran strategist Ed Yardeni projects an even higher trajectory, targeting $6,000 by year‑end and $10,000 by the end of 2029. What this means for crypto investors and markets - Portfolio flows: As gold attracts safe‑haven capital, some investors may rotate into other non‑traditional stores of value — including Bitcoin and tokenized gold products — as a hedge against fiat weakness and financial instability. - Correlation watch: Historically, Bitcoin has been viewed as “digital gold” by some investors, but its correlation with macro drivers can vary. A sustained risk‑off move that favors tangible safe havens could either draw in crypto as an alternative store of value or drive liquidity away from risk assets; outcomes will depend on macro policy (rates, fiscal responses) and investor risk appetite. - Product opportunity: Rising institutional demand for gold has also been reflected in growing interest in regulated, asset‑backed crypto products (gold tokens, ETFs tied to digital custody), which may gain traction in an environment where traditional gold is in tight supply. The outlook Gold’s surge into five‑figure territory is more than a headline — it’s a market signal. With central banks on the buy side, fiscal pressures building, and geopolitical uncertainty persistent, the drivers of the rally look structural rather than cyclical to many analysts. Key things to watch: Fed communications on rate cuts, central bank reserve purchases, fiscal policy developments in major economies, and supply dynamics from miners. For crypto market participants, the move reinforces the debate over whether digital assets can play the same role as physical safe havens when macro stress intensifies. Traders will be watching to see whether $5,000 becomes a new floor rather than just a historic high. Read more AI-generated news on: undefined/news

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