Gold smashes $5,000 barrier as safe-haven rush intensifies Gold reached an all-time high above $5,000 per ounce for the first time in history, briefly touching $5,093 late Sunday before settling around $5,070. What began as a risk-off move has morphed into a broad, momentum-driven rally: gold climbed more than 60% through 2025 and has carried that pace into 2026, pushing market participants to wonder whether $5,000 is a new floor rather than a ceiling. Why prices are running - Macroeconomic stress: Mounting government debt concerns, worries about currency debasement and persistent geopolitical instability have boosted demand for non-sovereign stores of value. - Central bank buying: Official sector purchases added hundreds of tons to reserves last year, according to the World Gold Council—a structural source of demand that analysts say is here to stay. - Weak dollar, rate dynamics: A softer dollar and expectations that the Federal Reserve may cut rates twice this year are reducing the opportunity cost of holding gold versus bonds, supporting prices. - Geopolitical shocks: Trade-policy threats, tensions between the U.S. and NATO partners, and ongoing wars in Ukraine and Gaza have all amplified safe-haven flows and market volatility. What the experts are saying - Robin Brooks (Brookings senior fellow, former IIF chief economist) described the precious-metals surge as “breathtaking and profoundly scary,” noting that traditional relationships—like gold falling when real rates rise—are breaking down as fiscal sustainability fears dominate. - Brian Fung (CEO, Hong Kong Gold Exchange) told the South China Morning Post that the fundamental drivers for gold show no sign of fading, underpinning further upside in 2026. - Nikos Kavlis (Metals Focus) highlighted a “very clear shift away from the US dollar,” which is helping gold. - Ahmad Assiri (Research Strategist, Pepperstone) explained the inverse link with rates: lower yields make government bonds less attractive, so investors rotate into gold. - Nicholas Frappell (global head of institutional markets, ABC Refinery) emphasized gold’s diversification appeal: it isn’t someone else’s liability the way bonds or equities are. Bigger-picture implications and forecasts - Supply constraints are a recurring theme: around 216,265 tonnes of gold have been mined in history—enough to fill a few Olympic-sized pools—and many analysts expect production to plateau, keeping scarcity on the table. - Market veterans are bullish: Ed Yardeni has set targets of $6,000 by year-end and $10,000 by the end of 2029. - Silver is rallying too: it topped $100 an ounce for the first time after nearly a 150% rise last year, underlining broader demand for precious metals. What crypto market participants should watch - Store-of-value competition: A surging gold market can compete with digital stores of value for risk-off capital. Crypto traders should monitor flows between gold and major cryptocurrencies, and watch whether gold’s rally draws liquidity away from risk assets. - Macro signals: Dollar strength, real yields, and central-bank buying patterns remain key macro indicators that will influence both gold and crypto. - Volatility linkage: Geopolitical shocks and policy surprises can drive rapid rotations into perceived safe havens—be prepared for spillover volatility across asset classes. At time of writing, gold remains above the $5,000 mark as traders assess whether the move represents a regime change in how markets price risk and monetary stability. Read more AI-generated news on: undefined/news

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