Gold Tops $5,200 as Fed Bets and Geopolitics Shake Markets

Gold surged to a record above $5,200 an ounce, extending a blistering rally driven by a weakening US dollar and a growing investor exodus from sovereign bonds and currencies.

Bullion climbed as much as 0.4% on Wednesday, building on a 3.4% jump in the prior session — its strongest one-day gain since April. President Donald Trump brushed off concerns over the dollar’s slide, which has pushed the world’s reserve currency to its lowest level in nearly four years.

The dollar’s decline, alongside rising geopolitical tensions and a selloff in Treasuries and global currencies, has intensified demand for precious metals. Gold is now up about 20% year-to-date, breaking above $5,000 an ounce for the first time this week. Silver has outperformed even further, soaring more than 50% over the same period.

Market anxiety has been amplified by turmoil in Japan’s bond market, fears over ballooning fiscal spending, and speculation that Washington could step in to support the yen — all of which have pressured the dollar and made metals more affordable for global buyers. The US dollar index dropped 1.1% on Tuesday, its sharpest daily fall since April.

Trump reiterated that he was unconcerned by currency fluctuations, saying the dollar was “doing great.” However, his administration’s recent moves — including geopolitical threats, trade tensions, and renewed criticism of the Federal Reserve — have rattled markets.

At the same time, traders are increasingly betting on a more dovish Federal Reserve, fueled by speculation that BlackRock CIO Rick Rieder could replace Jerome Powell as Fed chair. Expectations of lower interest rates typically favor gold, which offers no yield.

Analysts say the combination of geopolitical risk and a potentially less independent Fed is accelerating investor allocations to gold, particularly among retail buyers. Prices remain near record levels, with gold trading around $5,190 an ounce in Asia, while silver climbed to $113.