Gold just smashed through one of the biggest psychological levels in market history. The precious metal vaulted past $5,000 per ounce for the first time, then kept climbing, touching $5,110 in early Monday trading as investors piled into safe havens.
This rally is being powered by a toxic mix for risk assets: geopolitical tension, aggressive central bank buying, and a weakening US dollar.
Dollar Down, Gold Up
A big driver of the latest spike is the continued slide in the US dollar. The US Dollar Index has dropped to its lowest level since 2021 after speculation swirled about a possible joint US–Japan currency intervention. Adding fuel to the fire, the New York Fed reportedly conducted rate checks last week, a move traders often see as a signal that officials are monitoring markets closely.
Since Thursday alone, the dollar has fallen roughly 3.2% against the Japanese yen. As the dollar weakens, gold becomes cheaper for foreign buyers, which tends to push prices even higher.
Retail Traders Join the Gold Rush
This is not just an institutional move. Retail traders are swarming into precious metals too. The iShares Silver Trust $SLV ( ▼ 6.35% ) and SPDR Gold Shares ETF $GLD ( ▲ 0.73% ) were the two most-mentioned tickers on r/WallStreetBets over the past 12 hours, showing just how mainstream the metals trade has become.
Silver is riding the same wave, blasting to a record $110 per ounce as enthusiasm spills over from gold.
Geopolitics Keeps the Bid Alive
Beyond currencies, global tensions are keeping safe-haven demand red hot. Strained relations between the US and NATO over Greenland, rising pressure on Iran, and the Trump administration’s seizure of Venezuelan President Nicolás Maduro have all helped drive a massive 68% rally in gold over the past year.
Wall Street sees more upside, too. Goldman Sachs recently raised its year-end gold forecast to $5,400 per ounce, betting that central bank buying, ETF inflows, and growing retail interest will keep demand elevated.
Gold’s message to markets right now is loud and clear: investors are paying up for protection.