Gold tops $5,000 per ounce for the first time
Gold stormed past the $5,000-per-oz threshold for the first time ever, extending a historic rally fueled by growing geopolitical tensions, central bank buying, and a weaker dollar.
After first crossing the milestone in trading on Sunday, bullion pushed even higher in early action on Monday, topping $5,110. The latest extension of the shiny metal’s blinding rally has been boosted by the continued sell-off of the US dollar. Indeed, the US Dollar Index has now hit its lowest mark since 2021, following weekend speculation over a joint US-Japan intervention on the yen after the New York Federal Reserve reportedly conducted rate checks — where officials ask dealers what price they would get were they to enter the market — on Friday. The US dollar has shed ~3.2% against the Japanese currency since Thursday.
The surge in precious metals continues to be buoyed by enhanced retail attention, with the iShares Silver Trust and SPDR Gold Shares ETF far and away the most referenced tickers on the r/WallStreetBets subreddit over the past 12 hours.
Geopolitical tensions between the US and NATO over Greenland, increased American pressure against Iran, and the Trump administration seizing Venezuelan President Nicolás Maduro have also helped pushed the price of gold in recent months, contributing to a blockbuster 68% rally in the past year. Other precious metals like silver, which has become a favorite among retail traders in its own right, also surged to a record $110 per ounce on Monday.
Last week, Goldman Sachs hiked its year-end gold price forecast to $5,400 per ounce, as analysts at the investment bank expect continued rampant central bank buying, as well as increased retail attention and ETF inflows, to drive further demand.
