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The surge in the gold price is showing no sign of abating, as bullion continues to soar.
Gold has jumped over the $5,500 an ounce level this morning, just three days after hitting $5,000 for the first time, taking its gains so far this year to almost 30% (!).
It powered higher as investors continue to rush into safe haven assets, looking for protection against geopolitical and economic uncertainty.
Precious metals are also benefiting from the weaker dollar, which has lurched lower after president Trump indicated this week he was comfortable with the currency’s year‑to‑date softness. That only encouraged fears of monetary debasement, boosting gold’s attractiveness.
As Chris Beauchamp, Chief Market Analyst at IG, explains: “That sound you hear is that of 2026 gold targets being furiously revised higher, as the price keeps climbing, and given renewed impetus by Trump’s comments on the dollar. This will have fans of the debasement trade cheering in their seats, as it reinforces their thesis.
“Each time precious seem at risk of running out of bullish momentum, something comes along to rescue it. So long as international investors keep dumping the dollar, the future for gold looks bright indeed.”
Concerns around the independence of America’s central bank are also lifting gold.
Although the US Federal Reserve resisted pressure from Trump and held interest rates last night, it may cut rates once a new chair has been installed to replace Jerome Powell later this year. That could weaken the dollar further, and lift inflation – two conditions which are good for the gold price.
The rise in precious metals prices is “breathtaking and profoundly scary”, warns Robin Brooks, senior fellow at Brookings Institute.
He writes: “The rise in gold is part of something much bigger… all precious metals prices are going through the roof and gold is a laggard compared to silver and platinum.
“At the same time, we’re seeing government bond markets in high-debt countries like Japan under severe pressure, even as there’s a flight to safety into countries with low debt like Sweden, Norway and Switzerland. Gold is therefore a symptom of something much bigger. We’re at the start of a global debt crisis, with markets increasingly fearful governments will attempt to inflate away out-of-control debt. Gold is just one of many assets that are getting a “safe haven” bid as part of this phenomenon.”
Today’s key events
10am: Eurozone consumer/business confidence report
1.30pm: US trade report for November; US initial jobless claims report
3pm: US factory orders data for November
We’ll be tracking all the main events throughout the day on our business live blog …