Gold prices reached an unprecedented high on Monday, surpassing $5,000 per ounce for the first time, marking an 18% increase this year alone. This surge builds upon a 64% spike in 2025, the largest annual gain since 1979. Silver has followed suit, climbing above $100.00, building on last year’s massive gains.
Several factors are contributing to gold’s ascent, including safe-haven demand driven by global geopolitical tensions and a weakening US dollar. Renewed trade tensions, concerns about central bank independence, and higher inflation expectations are also playing a role. Central bank buying and retail speculation have further amplified the price increases.
Elsewhere, the dollar plunged to two-month lows against the yen amid speculation of potential intervention by U.S. and Japanese authorities to bolster the Japanese currency. Domestically, political tensions remain heightened, while the energy markets are experiencing disruptions due to Winter Storm Fern. U.S. stocks saw steady performance, while Treasury yields dipped ahead of this week’s Federal Reserve meeting, where policy is expected to remain unchanged.
