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The uptick in prices also comes at a time of decline in other non-equity assets like currencies and government bonds, especially the US Dollar-denominated assets, like the US government bond or US treasuries, as they are known. This trend of a pullback in currencies and treasuries over uncertainty is known as the so-called debasement trade.
(Photo Credit :
Bloomberg
)
For the first time in history, gold surpassed $5,000 per ounce, persisting with a meteoric surge driven by US President Donald Trump’s distortion of international relations and investor exodus from government sovereign bonds and currencies.
Bullion rose to about $5,040 after gaining more than 8% last week, picking up from the surges that the precious metal has witnessed at the beginning of 2026
As geopolitical risks and dollar weakness bolstered demand, a key indicator of the US currency recorded its largest weekly decline since May, making precious metals more affordable for the majority of buyers, and silver also reached a record after breaking $100 per ounce in the previous session.
This dramatic rally in Gold has made the metal more than double over the last two years.
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The recent surge is in addition to its recent peak of the best annual performance since 1979. In fact, gold has gained more than 15% so far this year.
This surge in the price of the yellow metal once again cements its historic role as a gauge of fear in markets amid volatility and lack of stability or potential instability.
The uptick in prices also comes at a time of decline in other non-equity assets like currencies and government bonds, especially the US Dollar-denominated assets, like the US government bond or US treasuries, as they are known. This trend of a pullback in currencies and treasuries over uncertainty is known as the so-called debasement trade.
It’s not just the US; a similar sell-off in the long and ultra-long Japanese bonds stemming from volatility in Asia’s second-largest economy was also witnessed last week.
Apart from ongoing troubles in the waters of geopolitics, Donald Trump’s domestic policymaking is also driving investors jittery. One of the main focal points of this year is the selection of the next US Fed Chair who will succeed the incumbent chair, Jerome Powell. All this, even as Trump continues to invoke the idea of firing Powell as his term comes to a close.
As per a report from Bloomberg, gold rose 1% to $5,035.25 an ounce as of 8:12 a.m. in Singapore. Silver advanced 2.2% to $105.50. Platinum edged lower, having earlier hit a record high, while palladium climbed.
