Gold has officially entered uncharted territory.

The metal surged past $5,000 an ounce over the weekend, hitting a record high of $5,091, as investors rushed into precious metals amid rising political shocks, tariff threats, and growing doubts about US fiscal and monetary stability. At the same time, silver smashed through $100 an ounce for the first time in history.

What started as a slow safe-haven rally has turned into one of the most dramatic commodity moves in decades.

From “Liberation Day” to $5,000

The roots of the rally trace back to April 2025, when President Trump’s “Liberation Day” tariff announcement rattled markets and pushed investors toward hard assets. Gold jumped to then-record levels, while silver lagged behind before beginning its own catch-up surge.

Later in 2025, fears escalated again:

  • Trump threatened to fire Fed Governor Lisa Cook, shaking confidence in Federal Reserve independence
  • Silver was added to the US critical minerals list
  • Supply disruptions pushed silver above $50 by October

But the real acceleration came in January 2026.

Geopolitical flashpoints multiplied:

  • The US arrest of Venezuela’s President Maduro
  • Trump’s tariff threats tied to Greenland
  • Fresh concerns over ballooning US deficits and debt

By Sunday night, gold finally crossed the psychological barrier.

“Headlines move the market”

“Headlines matter in the short term,” said Stephen Innes of SPI Asset Management. “Greenland today, Iran tomorrow, Fed independence the day after.”

Gold finished last week up 8.4%, its strongest weekly gain since the depths of the COVID crisis in 2020. Silver gained more than 14% in a single week, touching $108 in overnight trading.

Why investors are piling into gold

This rally is not just about war headlines.

Analysts point to deeper forces:

  • Weaker US dollar
  • Expectations of future Fed rate cuts
  • Massive US fiscal deficits
  • Falling demand for government debt
  • Central banks and private investors diversifying away from Treasuries

“Investors are paying for stability over leverage,” Innes said. “This is about deficits, credibility, and fragile balance sheets.”

Is the rally overheating?

Some warning signs are flashing.

Silver now trades more than 100% above its 200-day average, a level many analysts call “extremely stretched.” Gold positioning is crowded, and profit-taking has already begun in parts of the market.

But few expect a sudden collapse.

“As long as gold consolidates rather than collapses, the trend remains intact,” Innes said.

What comes next

For gold, the next psychological targets are already in view. Several banks now see prices moving toward $5,200 to $5,400 later this year if geopolitical stress and fiscal fears persist.

Silver remains more volatile. Some analysts warn that sharp pullbacks are possible, even if the long-term story stays bullish.

Gold above $5,000 is more than a milestone. It is a signal. Investors are no longer just hedging against inflation or war. They are hedging against policy risk, debt risk, and credibility risk.

In today’s market, gold is no longer just a safe haven. It is becoming a global referendum on trust.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Related: Gold and Silver Soar as Bitcoin Falls Behind in 2025