The price of an ounce surpasses the $5000 mark as geopolitical concerns rise and silver approaches 107

SadaNews - Gold has risen above the $5,000 per ounce level for the first time, continuing a rapid upward trend fueled by U.S. President Donald Trump's reshaping of international relations, and investors fleeing from sovereign bonds and currencies.

The price of gold increased by as much as 2.1% to approach the $5,100 level, driven by a weakened dollar that boosted demand. Meanwhile, the U.S. dollar index fell by about 2% over six trading sessions, amid speculation that the United States might support Japan in its efforts to strengthen the yen, increasing concerns about the independence of the Federal Reserve and Trump's volatile policies.

Silver prices also surged to a record level exceeding $109 per ounce, achieving gains for the third consecutive day in a surge supported by strong demand from retail buyers from Shanghai to Istanbul. At the same time, investors are awaiting further clarity regarding potential U.S. tariffs.

Gold as a historical fear indicator

The price of the metal has more than doubled in the past two years, affirming its historical role as an indicator of fear in the markets.

After its best annual performance since 1979, gold has risen an additional 17% since the beginning of this year, as rising geopolitical risks have bolstered what is known as the "currency devaluation trade," where investors retreat from currencies and treasury bonds.

In recent weeks, movements by the U.S. administration, including attacks on the independence of the Federal Reserve, the threat to annex Greenland, and military intervention in Venezuela, have raised concerns in the markets.

For investors looking to navigate this level of uncertainty, gold's appeal as a safe haven has rarely been more evident.

Max Bellmont, a portfolio manager at First Eagle Investment Management, said: "Gold is the opposite of confidence." He added: "It is a hedge against unexpected inflation waves, unplanned market downturns, and rising geopolitical risks."

Awaiting the outcome of the Trump-Fed dispute

Investors are awaiting Trump's choice for the next Federal Reserve chairman, after the U.S. president stated that he has completed candidate interviews, reiterating that he has someone specific in mind for the position.

Choosing a chairman who leans toward monetary easing could boost bets for further interest rate cuts this year, a positive factor for gold, which yields no return, following three consecutive cuts.

Gold rose by 1.5% to reach $5063.82 per ounce by 1:09 PM Singapore time. Silver also climbed 4.5% to $107.78. Platinum reached a record high as did palladium. The Bloomberg Dollar Spot Index fell 0.4% after losing 1.6% last week.

The price of silver

Silver prices were recorded near $107 per ounce, with traders monitoring global market movements and fluctuations in precious metal prices. This price comes amid intertwined factors including changes in industrial demand, dollar movements, and investors' expectations regarding economic policies in the upcoming period.