Gold Soars Past $5,500 as Weak Dollar Fuels Safe-Haven Rush

Good morning and welcome to our ongoing coverage of business, financial markets, and the global economy. The relentless surge in the gold price shows no signs of slowing down, with bullion continuing its dramatic ascent.

Gold Breaks Through $5,500 Barrier

This morning, gold has jumped over the $5,500 per ounce level, a milestone achieved just three days after it first hit $5,000. This rapid climb takes its gains for the year so far to almost 30%, a remarkable performance that underscores the metal's bullish momentum.

Drivers Behind the Rally

The precious metal is powering higher as investors flock to safe-haven assets, seeking protection against mounting geopolitical and economic uncertainties. Additionally, gold is benefiting significantly from a weaker US dollar, which has lurched lower following comments from President Trump this week indicating comfort with the currency's year-to-date softness.

This stance has only encouraged fears of monetary debasement, further boosting gold's attractiveness as a store of value. As Chris Beauchamp, Chief Market Analyst at IG, explains: "That sound you hear is that of 2026 gold targets being furiously revised higher, as the price keeps climbing, and given renewed impetus by Trump's comments on the dollar. This will have fans of the debasement trade cheering in their seats, as it reinforces their thesis. Each time precious metals seem at risk of running out of bullish momentum, something comes along to rescue it. So long as international investors keep dumping the dollar, the future for gold looks bright indeed."

Central Bank Concerns Add to Momentum

Concerns around the independence of America's central bank are also lifting gold prices. Although the US Federal Reserve resisted pressure from Trump and held interest rates steady last night, there is speculation that it may cut rates once a new chair replaces Jerome Powell later this year. Such a move could weaken the dollar further and potentially lift inflation, both conditions that are historically favourable for the gold price.