Gold Surges Past $5,000 Amid Trump-Induced Global Relations Uncertainty
Gold prices have crossed the significant milestone of $5,000 per ounce, driven by mounting global tensions linked to U.S. President Donald Trump’s policies. Investors are increasingly turning to gold as a safe-haven asset amid fears of shifting international relations.
Gold Prices Surge Amid Global Uncertainty
In the first 26 days of this year, gold prices increased by 15%. This surge follows a remarkable performance in 2025, where gold experienced a 65% annual gain, marking the largest yearly increase since 1979.
Key Factors Driving the Surge
The recent gold rally is attributed to several destabilizing actions taken by Trump. These include:
- Revoked tariff threats against NATO allies.
- A military operation targeted at Venezuelan President Nicolás Maduro.
- An ongoing investigation into Federal Reserve Chair Jerome Powell.
Additionally, a weaker U.S. dollar and higher-than-expected inflation rates are fueling demand for gold. Predictions of further interest rate cuts by the Federal Reserve also contribute to this trend.
Current Market Status
As of Sunday evening, gold was reported at $5,058 per troy ounce, reflecting an increase of 1.4%. Silver, another widely regarded safe-haven asset, saw a rise of 4.5% to reach $107.8 per ounce, building on its own impressive 141% increase last year.
Market Implications
The sharp rise in gold prices underscores its status as a refuge amid economic uncertainty. As global relations shift, investors may continue to view gold as a protective investment.