Gold Shatters $5k Record As Investors Seek Safety
The gold market is looking a lot like the pre-blizzard Trader Joe’s snack aisle this weekend. The price of Wall Street’s comfort food surged as much as 2.5% yesterday, shooting past a record $5,000 per ounce and putting it on track for the best year since 1979, a time of geopolitical mayhem.
Monday’s surge, which briefly had gold trading above $5,100, was partially driven by anxieties over President Trump’s threats to impose 100% tariffs on Canada this weekend due to its trade dealings with China and fears of a possible partial government shutdown over ICE funding. The jolt added momentum to last week’s rally, propelled by the US–Europe standoff over Trump’s Greenland annexation aspirations and Japan’s bond market meltdown.
Hazy future hedge
It’s not just newsy chaos that had everyone from your day trader cousin to central banks binge-buying gold, helping it to rally more than 80% over the past 12 months:
- Investors are concerned with persistent inflation amid potentially unsustainable levels of government debt. They’re also worried that stocks might be overvalued.
- Plus, declining interest rates have suppressed returns on bonds, making them a comparatively less attractive option for parking cash.
Is it peak gold? Previous gold rallies have lasted for years, and many analysts anticipate this one will endure in 2026. Many of the risks keeping investors up at night are likely not going anywhere soon.—SK
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