In a remarkable escalation, gold prices surpassed $5,000 per ounce - a historic first - as concerns about the impact of President Donald Trump's unconventional policies on international alliances and domestic institutions drove investors towards the precious metal as a safe haven. This shift marks a continuation of a robust upward trend that began last year, signaling persistent apprehension among market participants regarding global economic and political stability.
Since the start of 2026, within just 26 days, gold has climbed 15%, following an extraordinary 65% increase throughout 2025, which was the largest annual gain witnessed since 1979. These figures underscore the metal’s traditional role as a refuge asset during periods characterized by heightened uncertainty and market anxiety.
The current rally is attributed to a series of disruptive developments, both on the global stage and within the United States. Key among these are controversial moves by the Trump administration perceived as destabilizing: the rescinded proposals for tariffs targeting NATO allies, intended as leverage to acquire Greenland; a military operation aimed at apprehending Venezuelan President Nicolás Maduro; and the initiation of a criminal probe into Federal Reserve Chair Jerome Powell. Collectively, these actions have unsettled investors, prompting a surge in safe-haven demand.
Additional factors contributing to the precious metals' gains include macroeconomic indicators such as a weakening US dollar and inflation rates exceeding expectations, which have fueled speculation of forthcoming federal interest rate reductions. Reflecting this environment, on Sunday, gold prices rose 1.4%, reaching $5,058 per troy ounce as of early evening Eastern Time.
Silver, commonly viewed as another instrument for risk mitigation, has also experienced a sharp price increase. It climbed 4.5% to $107.80 an ounce, following its own impressive 141% surge in 2025, the best performance seen since 1979.
This continuing surge underscores the heightened market sensitivity to both international and domestic policy shifts which, in combination with economic vulnerabilities, have invigorated demand for precious metals. Investors appear to be recalibrating their portfolios to manage the emerging risks posed by the current political and economic landscape.
Given these dynamics, gold and silver remain critical indicators for assessing the depth of investor concern and expectations for future market conditions amidst ongoing unpredictability.