FX.co ★ Gold Climbs Above $5,200 as Dollar Weakens

Gold prices soared past $5,200 per ounce on Wednesday, reaching unprecedented levels due to a significant decline in the dollar that bolstered investor interest in these safe-haven metals. This rise came in the wake of U.S. President Donald Trump's comments indicating a lack of concern over the dollar's recent four-year low, suggesting the administration's approval of a weaker currency to enhance export competitiveness. Adding to the momentum behind the precious metals rally were uncertainties within Washington, including Trump's tariff threats against other nations and his criticisms of the Federal Reserve's autonomy. Meanwhile, the Federal Reserve is expected to maintain current interest rates, with markets attentively watching for any indications about the timing of potential future rate cuts. Additionally, gold has benefitted from strong central bank purchasing and ongoing inflows into ETFs. Year-to-date, gold has increased approximately 20%, while silver has seen an impressive surge of nearly 60%.