Gold Soars Past $5,500 as Weak Dollar Fuels Safe-Haven Rush

Good morning and welcome to our rolling coverage of global business, financial markets, and the world economy. The remarkable surge in the gold price shows no signs of slowing down, with bullion continuing its dramatic ascent to new record highs.

Gold Breaks Through $5,500 Barrier

This morning, gold has vaulted over the $5,500 per ounce level, a staggering milestone achieved just three days after it first breached the $5,000 mark. This latest jump brings its gains for the year so far to almost 30%, a phenomenal performance that underscores the metal's powerful bullish momentum.

Weak Dollar and Safe-Haven Demand Drive Rally

The precious metal is being propelled higher as investors flock to safe-haven assets, seeking protection against mounting geopolitical tensions and economic uncertainty. Gold and other precious metals are also reaping significant benefits from the weakening US dollar, which has stumbled lower following comments from President Trump this week indicating his comfort with the currency's softness year-to-date.

This stance has only amplified fears of monetary debasement, further enhancing gold's appeal as a store of value. The phenomenon, often referred to as 'the debasement trade', appears to be a key driver behind not just gold's rally, but also record highs in assets like bitcoin and shares.

Analyst Insights on the Gold Surge

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 metals 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 regarding the independence of America's central bank are providing additional lift to gold prices. Although the US Federal Reserve resisted pressure from President Trump and held interest rates steady last night, market watchers anticipate potential rate cuts once a new chair is appointed to replace Jerome Powell later this year.

Potential Future Catalysts

Such a move could further weaken the dollar and potentially stoke inflation—two conditions historically favourable for gold. The interplay between monetary policy, currency strength, and investor sentiment continues to create a potent environment for precious metals.