Gold breaks records and surpasses $5,100 as investors flee US assets

Precious metal prices rose sharply on Monday amid widespread investor demand for safe havens.

Gold broke through the $ 5,100-per-ounce level for the first time in its history, supported by the US dollar's decline and rising concerns about the repercussions of US President Donald Trump's economic and geopolitical policies.

Spot gold recorded strong gains of about 2.5%, reaching a level of $5111.07 per ounce during the session.

Meanwhile, gold futures for February delivery rose by 2.43%, or $121.2, to settle near $5100.90 an ounce, in a clear indication of rising investment demand for the yellow metal.

In contrast, silver performed exceptionally well, with the spot price jumping 13.37% to $116.71 an ounce, marking its biggest daily gain since 2008.

With this rise, silver's gains since the beginning of the year have increased to about 63%, reflecting a clear shift in investor sentiment towards precious metals.

This sharp rise in gold and silver prices reflects the traditional role of the yellow metal as a measure of risk levels in global markets.

Investors have been reducing their exposure to currencies and US Treasury bonds amid growing concerns about expanding government spending, escalating geopolitical tensions, and US actions related to Greenland and Venezuela.

What Does This Mean for Me?

These developments have deepened the sell-off of US assets, known in markets as the "America sell-off," directly impacting the US dollar, which lost about 2% of its value in just six trading sessions. This decline is partly due to speculation about US intervention to support yenappreciation.

As for other precious metals, platinum futures contracts for April delivery recorded a notable increase of 4.69% to reach $2,870 per ounce.

Meanwhile, palladium futures for March delivery jumped 8% to settle at $2,190.50 an ounce, amid a broad rally that included most precious metals.