Gold prices continued their upward trajectory, breaking through $5,100 per ounce on Monday to set a fresh all-time high. This breakthrough not only far exceeded Wall Street's previous expectations for gold's performance within the year but also stands as a significant landmark event in the current global financial markets. Concurrently, silver also experienced a substantial surge during the same period, briefly surpassing $115 per ounce intraday, with a year-to-date increase of 50%, outperforming gold.
The rapid ascent of precious metals is widely viewed as a strong reaction from investors to the risk of "currency devaluation." Against a backdrop of continuously expanding global government debt and persistent inflationary pressures, physical assets like gold and silver have become safe havens eagerly sought by market capital. Robin Brooks, a senior fellow at the Brookings Institution, pointed out that gold's surge represents the beginning of a "larger pattern," namely a precursor to a global debt crisis. He warned, "Markets are growing increasingly concerned that governments will 'dilute' runaway debt through inflation."
Brooks added that the US dollar has been weakening consistently since early 2026, hitting a four-month low this past Monday. Against the backdrop of a weaker dollar, the purchasing power of non-US dollar investors has strengthened, thereby further fueling the rise in gold and silver. Goldman Sachs recently raised its year-end target price for gold from $4,900 to $5,400, citing accelerated entry by private investors seeking asset diversification and wealth preservation. Analysts at Goldman Sachs believe that with ongoing global policy uncertainty, precious metal prices still have room to rise.
The silver market is experiencing an even more frenzied surge. Adam Button, an analyst at Investinglive, described this as "one of the most glorious days ever" for the silver market, a scenario extremely rare in commodity markets. Year-to-date, silver prices have climbed 50%, far exceeding the gains in gold. Analysis indicates that because the silver market is much smaller in size than gold and has relatively lower liquidity, its price is more susceptible to violent fluctuations.
Button noted that silver has broken through the key psychological barrier of $100, which "was initially seen as a test point for a price pullback but instead triggered an astonishing rally." He warned that although market sentiment is fervent, with prices continuously soaring, this week could see another adjustment to margin requirements, and brokers might tighten trading permissions. Despite silver's spectacular rally, Button remains cautious. He stated that when adjusted for inflation, the 1980 silver price (influenced that year by the Hunt brothers' market manipulation) would be equivalent to $195 per ounce today, meaning "the current price is still only half of the actual peak back then."
Therefore, while there is potential for further gains, he reminded investors not to blindly chase the rally but to remain rational. Investors who already hold positions, in particular, could consider taking profits in stages or continuing to hold firmly. The upward trend in gold prices is also being driven by geopolitical and international economic turbulence. This year, every major international event has spurred a rise in gold prices, including the US arrest of Venezuelan leader Maduro and trade threats issued by President Trump during Greenland time.
In Africa, Tanzania has also become a focal point in the gold market. The country's president has instructed the central bank to sell part of its gold reserves to raise funds for infrastructure construction projects. According to Kitila Mkumbo, the Minister of State in the President's Office, a large liquefied natural gas project valued at $42 billion is expected to be signed by June. To this end, the president has requested the central bank to sell some gold assets to raise capital. This move also highlights the strategic use of gold reserves by nations under fiscal pressure.
Is the bull market sustainable? Although some central banks are adjusting their gold holdings, Brooks believes this year's precious metals rally is not primarily driven by central banks but stems from broader market trends and safe-haven demand. He pointed out, "This is a fully diffused precious metals bubble, indicating that central banks are not the sole drivers." Other metal markets are also heating up. Platinum has risen over 40% since the start of the year, and copper broke through $13,000 per ton on the London market last Friday, setting a new record high, further confirming the global chase for physical assets.
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