Gold prices have soared past $5,000 per ounce for the first time, driven by heightened investor interest in this safe-haven asset amid growing concerns over the foreign policy decisions of US President Donald Trump. In the first 26 days of this year alone, gold prices have surged 15%, continuing a remarkable trend from 2025, when prices skyrocketed by 65%, marking the most significant annual increase since 1979.
Historically, gold serves as a refuge during uncertain times and reflects market anxiety. The extraordinary rally observed in 2026 can be attributed to a series of controversial actions taken by Trump, including the recently reversed tariff threats against NATO allies, a military operation aimed at apprehending Venezuelan President Nicolás Maduro, and ongoing criminal investigations into Federal Reserve Chair Jerome Powell.
Additionally, the ascent in gold prices has been supported by a weakening US dollar, unexpectedly high inflation rates, and forecasts suggesting further interest rate cuts by the Federal Reserve this year.
As of Sunday evening, gold increased by 1.4%, reaching $5,058 per troy ounce. Meanwhile, silver also experienced a significant rise, climbing 4.5% to settle at $107.8 an ounce, following an impressive 141% increase in 2025, its best performance since 1979.
The current market dynamics portray a strong demand for precious metals, reflecting investor strategies in an increasingly unpredictable global environment. With the potential for continued fluctuations in the financial landscape, these developments underscore the enduring appeal of gold and silver as protective investments.