Gold breaks $5,000 an ounce for first time as investors flee to safety

"Gold surged past $5,000 an ounce for the first time on Monday as investors piled into safe-haven assets amid a weakening dollar, renewed currency market volatility and escalating geopolitical tensions. The price of the precious metal climbed 1.7 per cent to $5,075.97 an ounce, extending a rally that has gathered pace this year as markets grapple with political uncertainty and shifting global power dynamics. Silver also surged, jumping 5 per cent to a fresh record high of $107.99 an ounce."

"Currency markets were on edge after sharp moves in the Japanese yen reignited speculation of a joint intervention by the United States and Japan to stabilise the currency. The yen strengthened more than 1 per cent to 153.99 per dollar, rebounding after violent swings late last week that marked its sharpest moves in years. The prospect of coordinated action would be the first US-Japan intervention in 15 years."

"Demand for gold has been underpinned by its traditional role as a store of value during periods of economic, political and military instability. The rally has been reinforced by a softer US dollar, which makes gold and silver cheaper for buyers using other currencies. The dollar weakened against a basket of major currencies, including sterling, which was trading at $1.3665. The currency moves added pressure to equity markets, with Japan's Nikkei 225 falling 1.7 per cent."

Gold climbed past $5,000 an ounce and silver hit a record as investors moved into safe-haven assets amid a softer US dollar and renewed currency market volatility. The rally reflected gold's traditional role as a store of value during economic, political and military instability and was amplified by dollar weakness that made metals cheaper internationally. Sharp yen moves prompted speculation of a rare coordinated US-Japan intervention, while dollar losses pressured equity markets. Heightened geopolitical concerns, including tensions linked to Greenland and fresh US sanctions on Iran, further unsettled investor sentiment and supported demand for bullion.

Read at Business Matters