"The surge in the gold price is showing no sign of abating, as bullion continues to soar. Gold has jumped over the $5,500 an ounce level this morning, just three days after hitting $5,000 for the first time, taking its gains so far this year to almost 30% (!). It powered higher as investors continue to rush into safe haven assets, looking for protection against geopolitical and economic uncertainty."
"Precious metals are also benefiting from the weaker dollar, which has lurched lower after president Trump indicated this week he was comfortable with the currency's yeartodate softness. That only encouraged fears of monetary debasement, boosting gold's attractiveness. That sound you hear is that of 2026 gold targets being furiously revised higher, as the price keeps climbing, and given renewed impetus by Trump's comments on the dollar. This will have fans of the debasement trade cheering in their seats, as it reinforces their thesis."
"Concerns around the independence of America's central bank are also lifting gold. Although the US Federal Reserve resisted pressure from Trump and held interest rates last night, it may cut rates once a new chair has been installed to replace Jerome Powell later this year. That could weaken the dollar further, and lift inflation two conditions which are good for the gold price."
Gold surged past $5,500 an ounce after climbing above $5,000 three days earlier, bringing year-to-date gains to almost 30%. Investors are rushing into safe-haven assets seeking protection amid geopolitical and economic uncertainty, while precious metals receive support from a weaker dollar. The dollar weakened after president Trump indicated comfort with its year-to-date softness, stoking fears of monetary debasement and boosting gold's appeal. 2026 gold targets are being revised higher as prices climb. Concerns about Federal Reserve independence and the possibility of rate cuts under a new chair could further weaken the dollar and lift inflation, supporting higher gold prices.
Read at www.theguardian.com
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