This article first appeared on GuruFocus.
Gold (GLD) prices continued to push toward the $5,000-an-ounce threshold as investors responded to a mix of geopolitical strain and mounting concerns around US monetary independence. After surging to a record above $4,967, bullion was set for a weekly gain of nearly 8%, supported by a weaker dollar that has reduced the cost of precious metals for global buyers. Silver moved to an all-time high just below $100 an ounce, while platinum also reached a record, reflecting broad-based strength across the complex as the US currency logged its weakest week in seven months.
Market participants point to a combination of political and macro drivers behind the latest leg higher. Renewed criticism of the Federal Reserve by US President Donald Trump, military intervention in Venezuela, and rhetoric surrounding Greenland have added momentum to what some describe as a debasement trade, where investors scale back exposure to sovereign bonds and currencies in favor of alternative stores of value. Following its strongest annual performance since 1979, gold has added another 15% early this year, with strategists noting that limited supply may leave prices more sensitive to further shifts in geopolitical or policy risk.
Institutional demand has reinforced the rally. Goldman Sachs Group Inc. (NYSE:GS) raised its year-end gold forecast to $5,400 an ounce from $4,900, citing stronger demand from private investors and central banks. Poland’s central bank approved plans to purchase an additional 150 tons of gold, while India’s holdings of US Treasuries have fallen to a five-year low as gold and other alternatives take a larger share. Silver’s surge has been amplified by a historic short squeeze, strong retail buying, and uncertainty tied to Chinese export licensing, contributing to heightened volatility even as the US refrained from imposing blanket tariffs on key metals. As of midday in Singapore, gold traded near $4,952 an ounce, silver around $98.70, and platinum near recent record levels.