Gold topped $5,000 an ounce for the first time in history, extending a strong rally fueled by geopolitical uncertainty, US President Donald Trump’s policies and investors fleeing currencies and government bonds.
The price of gold rose about 2 percent, above $5,085, amid a weakening U.S. dollar and concerns about the independence of the Federal Reserve. Silver also posted strong gains, surpassing $100 an ounce to hit record highs, while platinum and palladium also rose.
The rise in precious metal prices reflects heightened fear in the markets, caused by geopolitical tensions, rising public debt and unpredictable moves by the US administration, including trade threats, political pressures and international disputes.
Gold has more than doubled in value in the last two years, and is up over 17 percent this year, confirming its role as a safe haven in times of inflation, fiscal instability and global uncertainty.
By 10:10 a.m. Singapore time, gold was trading at $5,072.80 an ounce, silver at $107.49, while the Bloomberg Dollar Index was down 0.4 percent.
