Gold Smashes Records as Price Hits $5,029 amid Donald Trump Uncertainty

Gold has surged past the $5,000 mark for the first time in history, as investors flee to the traditional “safe haven” asset amid escalating geopolitical and trade tensions fuelled by the Trump presidency.

The precious metal climbed 0.93% to reach $5,029.39 (approximately MUR 231,350) per ounce at roughly 23:40 GMT on Sunday, 25 January.

This milestone represents a staggering ascent for the commodity, which was valued at just over $2,000 in January 2024.

A Climate of Global Instability

The record-breaking rally is largely attributed to the uncertainty surrounding Donald Trump’s administration.

Recent tensions regarding the American President’s desire to seize Greenland—and his threats to impose customs duties on European allies who oppose the move—have driven market anxiety.

Despite a brief reprieve at the World Economic Forum in Davos, where threats of new tariffs were withdrawn, the upward trajectory remains unchecked. Investors remain on edge over volatile situations in Ukraine, Gaza, and Iran.

“Investors are reluctant to abandon gold in case Donald Trump wakes up with a new controversial idea,” noted Dan Coatsworth, an analyst at AJ Bell.

Pressure on the Federal Reserve

The surge is further bolstered by a weakening US dollar and significant friction between the White House and the Federal Reserve.

President Trump has persistently criticised Fed Chair Jerome Powell, demanding deeper interest rate cuts.

The situation reached a breaking point recently when Mr Powell revealed that the Department of Justice had opened a procedure against him.

The central bank chief has denounced the move as an attempt to intimidate the institution for failing to follow the President’s recommendations.

Debt and Depreciation

Beyond political drama, structural economic factors are playing a critical role.

Neil Wilson of Saxo Markets suggests that currency depreciation and rising levels of national debt are driving an “insatiable thirst” for tangible assets.

This shift indicates a move by investors to secure wealth in real assets that preserve long-term value.

Silver Follows Suit

The “yellow metal” is not the only commodity reaching dizzying heights. Silver has more than doubled in value since October 2025, surpassing $100 per ounce for the first time on Friday.

By Sunday evening, silver stood at $104.83 (approximately MUR 4,820), supported by industrial demand in the solar and electronics sectors.

Analysts at Trade Nation attributed the spike to “FOMO” (fear of missing out) and persistent rumours of supply shortages.

Source: Defi Media