As the preference for safe-haven assets continued, international gold prices topped $5,000 per ounce for the first time ever and then moved above the $5,100 level intraday.
According to Reuters, as of 1:31 p.m. Eastern time on the 26th, spot gold was trading at $5,077.22 per ounce, up 2% from the previous session. Intraday, it jumped to $5,110.50, hitting a record high.
Spot gold broke above $5,000 per ounce for the first time ever at around 6 p.m. Eastern time on the 25th and climbed to the $5,100 level in a day. On the New York Mercantile Exchange, February delivery gold futures settled at $5,082.50 per ounce, up 2.1% from the prior session.
Investment demand for gold as a safe asset to replace the dollar is fueling the rally. Gold prices rose 27% in 2024 and then surged 65% in 2025, and the upward trend has continued into the new year.
Since concerns about infringement on the Federal Reserve's (Fed) independence and U.S. President Donald Trump's threat to annex Greenland flared, weakening trust in dollar assets has also been cited as a background for the rise in gold, with growing worries about the so-called "sell America" or "debasement trade." A debasement trade refers to an investment strategy that hedges against the qualitative deterioration of a currency's value.
Trump's warning on the 24th to Canada that he would impose a 100% tariff on all Canadian products if it signs an agreement with China also stoked gold's strength. Prime Minister Carney of Canada said he has no intention of signing a free trade agreement (FTA) with China, but concerns that tensions between the United States and Canada have been escalating recently have increased market uncertainty.
Ryan McIntyre, head of the asset manager Sprott, told Reuters, "Gold prices are being supported by heightened geopolitical and economic uncertainty," and "Central Banks are maintaining strong buying as they diversify their foreign exchange reserves and reduce reliance on the U.S. dollar."
Experts see a strong likelihood that gold's rise will continue for the time being. Societe Generale projected that gold could reach the $6,000-per-ounce level this year, while Morgan Stanley set its target at $5,700.
Silver prices also extended their surge. After breaking above $100 per ounce for the first time ever on the 23rd, spot silver rose more than 10% on the day to $117.69.
Meanwhile, the dollar continued to weaken. On ICE Futures, the dollar index (DXY), which measures the dollar against six major currencies including the euro, was 97.03 near the close of the New York stock market, down 0.6% from the previous session. With concerns growing over a "transatlantic trade war" between the United States and Europe due to President Trump's push to annex Greenland, the dollar index is down 2.4% from the 19th.