Gold Smashes $5,000 As Dollar Slides And Investors Flock To Hard Assets

Gold surged past the $5,000-per-ounce mark for the first time in history on Monday, with silver also hitting record territory, as investors rushed into precious metals amid a weakening U.S. dollar, Federal Reserve uncertainty, and mounting geopolitical risk.

Spot gold was trading near $5,110 per troy ounce early Monday, while silver jumped 8%, pushing further above $100 an ounce and extending its recent rally.

U.S. equities, meanwhile, opened the week slightly higher after two consecutive weekly losses. The Dow Jones Industrial Average climbed more than 150 points, or 0.32%, at the open, while the S&P 500 gained 21 points, roughly 0.3%. The Nasdaq Composite rose about 32 points, or 0.14%.

The U.S. dollar continued to slide, hitting a four-month low as markets priced in rising political and macroeconomic uncertainty. Investors pointed to fears of another potential government shutdown, renewed trade tensions following President Donald Trump’s threats of steep tariffs on Canada, and escalating global instability that has driven demand for hard assets.

Currency volatility added further pressure on the greenback, particularly after a sharp rally in the Japanese yen. That move followed signals from Washington and Tokyo suggesting they may step in to support the Japanese currency.

Markets are also bracing for Wednesday’s Federal Reserve interest-rate decision and Chair Jerome Powell’s press conference, with traders searching for clues about the central bank’s policy path in the months ahead.

According to Dean Lyulkin, founder of The Dean’s List newsletter, the rally in gold and silver goes beyond dollar weakness alone.

The underlying force, Lyulkin told the NY Post, is a changing outlook on interest rates as Powell’s term as Fed chair nears its end. Investors, he told The Post, are increasingly betting on a more dovish Federal Reserve once Powell departs, even if bond markets have not fully reflected that shift yet.

“Jerome Powell is a lame duck now,” Lyulkin said, adding that “once this Fed chair exits, policy will bend toward growth support, not neutral discipline.”

Metals traders, he explained, are already positioning for deeper rate cuts over the next year.

“When inflation stays somewhat sticky and the Fed eases anyway, real yields compress fast,” Lyulkin said, noting that this is “historically when gold does its best work, even if headline Treasury yields don’t move much.”

Beyond monetary policy, Lyulkin argued that investors often undervalue precious metals as a form of protection in an increasingly unstable world.

“The other piece people underestimate is insurance,” he said.

“Gold and silver aren’t just macro trades, they’re portfolio hedges against a world that’s getting more unstable, not calmer.”