Gold has crossed a psychological and financial milestone, surging past $5,000 an ounce for the first time, as investors seek refuge from escalating geopolitical and economic uncertainty triggered by a series of disruptive moves from US President Donald Trump.
The precious metal’s rally has been swift and striking. In the first 26 days of 2026 alone, gold prices have climbed 15%, extending an extraordinary run from 2025, when they surged by 65% – the strongest annual performance since 1979.
A classic safe haven in anxious times
Gold has long been viewed as a barometer of fear, rising when confidence in markets, institutions and currencies falters. This year’s historic rally reflects precisely that dynamic, with investors responding to a mix of geopolitical shocks, policy uncertainty and economic pressures.
Market nerves have been shaken by a string of headline-grabbing developments linked to the Trump administration, including now-reversed tariff threats against NATO allies amid rhetoric about absorbing Greenland, a US-led military operation targeting Venezuelan President Nicolás Maduro, and a criminal investigation involving Federal Reserve Chair Jerome Powell.
Together, these moves have amplified concerns that long-standing global alliances and economic norms are being destabilised.
Economic factors add fuel to the rally
Beyond geopolitics, gold’s ascent has been supported by a weaker US dollar, stubbornly high inflation and growing expectations that the Federal Reserve will cut interest rates further this year. Lower rates tend to boost non-yielding assets like gold, making them more attractive relative to bonds and cash.
On Sunday, gold was up 1.4% at $5,058 per troy ounce, underlining the momentum behind the rally.
Silver follows suit
Silver, often seen as gold’s more volatile cousin, has also caught fire. Prices jumped 4.5% to $107.8 an ounce, following a staggering 141% surge in 2025, its best annual performance since, again, 1979.
The parallel rise of both metals suggests that investors are not merely hedging short-term risk but are repositioning more broadly in anticipation of prolonged instability.
As uncertainty deepens across diplomacy, markets and monetary policy, the rush into gold signals a clear verdict from investors: safety, for now, outweighs risk.
Source: CNN