Gold prices surged past $5,200 per ounce on Wednesday, scaling new all-time highs as a sharp decline in the US dollar drove investors toward safe-haven assets amid growing policy uncertainty in Washington.
The rally gathered pace after Donald Trump said he was unconcerned about the dollar’s recent slide, which has taken the greenback to its lowest level in four years. His comments signalled that the administration is comfortable with a weaker currency, viewing it as supportive of US export competitiveness.
Dollar weakness, policy uncertainty lift gold
Gold’s surge has been underpinned by persistent uncertainty around US trade and monetary policy. Renewed tariff threats from Trump against key trading partners and repeated criticism of the Federal Reserve’s independence have unsettled markets, boosting demand for defensive assets.
Investors are also closely watching the Federal Reserve’s policy decision later on Wednesday. While the central bank is widely expected to keep interest rates unchanged, markets remain focused on any guidance regarding the timing and pace of future rate cuts.
Central bank buying and ETF inflows add support
Beyond macro drivers, gold has continued to benefit from strong central bank purchases and sustained inflows into gold-backed exchange-traded funds, reinforcing its appeal as a store of value in a volatile global environment.
So far this year, gold has gained around 20%, significantly outperforming many other asset classes. Silver has seen even sharper moves, with prices up nearly 60% year-to-date, reflecting heightened speculative interest and its dual role as both a precious and industrial metal.
