Gold simply hit $5,590—an all-time excessive. And it didn’t occur accidentally. The chart tells the story: a gentle climb since August 2025, accelerating sharply in early 2026. One main catalyst? Donald Trump’s renewed push for decrease rates of interest.
Let’s be clear: Trump isn’t setting Fed coverage—however his rhetoric issues. With the 2024 election behind him and a second time period underway, he’s brazenly calling for fee cuts, arguing that prime borrowing prices are hurting progress and small companies. The market is listening.
Why does this assist gold?
Actual yields drop — Gold pays no yield. When nominal charges fall and inflation stays sticky (because it has), actual charges flip damaging. That makes holding gold extra enticing versus bonds or money. Greenback weak spot — Decrease charges sometimes weaken the USD. Since gold is priced in {dollars}, a softer buck lifts its worth globally—particularly for non-U.S. consumers. Secure-haven demand spikes — Political uncertainty + looser financial coverage = basic gold cocktail. Traders hedge in opposition to volatility, forex debasement, and monetary overreach.
The latest surge isn’t simply sentiment—it’s technical too: the breakout above $5,000/oz (and the run-up to $5,590) triggered algorithmic purchase orders and stop-loss looking. Momentum feeds on itself.
Backside line: if the Fed caves to political strain and cuts charges in H2 2026, gold may check $6,000+ earlier than year-end.
