Gold price jumps above $5,000 an ounce for first time amid Trump turmoil

Gold Market Insights - The price of gold has reached a record high of $5,100 per ounce, driven by investor demand for safe-haven assets amid political uncertainty [1] - Gold prices have surged nearly 90% since Donald Trump's second inauguration, reflecting a significant shift in market sentiment [2] - Analysts predict further increases in gold prices, with forecasts suggesting a potential high of $6,400 per ounce and an average of $5,375 over 2026 [3] Economic and Political Influences - Concerns over U.S. political stability, including threats of tariffs and potential government shutdowns, are contributing to the volatility in financial markets [2][8] - The new Japanese administration's plans for unfunded spending and tax cuts have raised fears among international investors, reminiscent of past economic crises [5][6] - The U.S. Federal Reserve's potential actions to weaken the dollar are seen as a factor that could further enhance gold's appeal as a store of value [9][10] Market Reactions - The recent rise in gold prices is described as the most spectacular in decades, comparable to historical events such as the oil shocks of the late 1970s [4] - The yen has shown some recovery against the dollar, influenced by speculation regarding the Federal Reserve's currency interventions [7] - The dollar's depreciation, losing almost 10% of its value against a basket of currencies last year, is expected to continue as the Fed considers interest rate cuts [11]