Gold Surges Past $5,000 To Historic High As 'Crisis Of Confidence' In Trump Administration Rattles Global Markets

Gold shattered the $5,000 ceiling for the first time in history on Monday, hitting a record high of $5,093.15 per ounce as U.S. policy decisions sparked a global flight to safety.

Crisis Of Confidence

Spot gold rallied nearly 2% to trade around $5,069 during the publication of this story, fueled by what analysts are calling a “crisis of confidence” in Washington.

Markets have been rattled by the Donald Trump administration's abrupt threats to impose heavy tariffs on European allies and Canada, alongside renewed geopolitical tensions over Greenland.

“The latest catalyst is effectively this crisis of confidence in the U.S. administration and U.S. assets,” Kyle Rodda, a senior market analyst at Capital.com told Reuters.

Rodda noted that the administration’s “erratic decision-making” has caused a rupture in standard diplomatic protocols, leaving investors scrambling for gold as the “only alternative” to a destabilized dollar.

‘Coldest’ Economy

The rally serves as a sharp rebuke to the White House’s economic narrative. While Trump continues to tout the U.S. as having the “hottest economy in the world,” prominent economist Peter Schiff argues the financial markets prove otherwise.

“Financial markets prove it's the coldest,” Schiff warned on X, pointing to the dollar getting “crushed” against the Swiss franc and other fiat currencies.

As the greenback slips below the 98 mark, the safe-haven rush has spilled over into other precious metals, with silver surging past $100 to a record $109.46.

Historic Returns, Future Outlook

The milestone caps a multi-year bull run where gold has decoupled from traditional equities.

Data from Creative Planning shows that since the inception of the first SPDR Gold Trust (NYSE:GLD) in 2004, the metal has now returned over 932%, officially surpassing the 744% return of Warren Buffett's Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK).

With central banks—led by China—continuing a 14-month buying spree to diversify away from the dollar, experts see further upside.

Metals Focus, as per Reuters, has adjusted its forecast, predicting gold could peak near $5,500 later this year as the geopolitical risk premium continues to rise.

Here’s a list of some gold and gold mining stocks-linked ETFs for investors to consider.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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