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Gold Breaks $5K as Tariff Threats and Shutdown Risks Mount
Gold's new all-time high extended a rally fueled by U.S. tariff threats, shutdown risks, and central bank buying.
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Gold broke $5K per ounce for the first time on Monday, extending a rally driven by U.S. tariff threats, shutdown risks, and continued central bank accumulation.
What's the Scoop?
- Historic Milestone: Gold futures traded at $5,080 per ounce on Monday as of time of writing, marking a 17% gain in 2026 and an 89% rise from the start of 2025.
- Immediate Catalysts: The rally was fueled by a weakened dollar, tariff threats against Canada, and looming government shutdown risks after Senate Democrats vowed to block a major funding bill.
- Silver Surge: Silver jumped over 8% to near $110 per ounce, having climbed 50% year-to-date.
- Fed Uncertainty: Markets are watching the Fed's meeting this week, with attention focused on whether Powell will remain on the board when his chairmanship ends in May and who Trump will tap as his successor.
Bankless Take:
The case for gold has never been stronger. As we've covered over the past several months, gold is behaving exactly as its thesis predicts: a hedge against geopolitical instability and a refuge as central banks rotate out of Treasuries. At least right now, the forces driving this rally prove to be structural, not temporary.
Ongoing tensions between the U.S. and major powers, domestic policy chaos in Washington, and renewed questions about Fed independence after Powell’s public clash with Trump two weeks back have created an environment where hard assets thrive.