Gold simply hit $5,590—an all-time excessive. And it didn’t occur accidentally. The chart tells the story: a gradual 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 overtly calling for fee cuts, arguing that prime borrowing prices are hurting development 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 adverse. That makes holding gold extra engaging 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.
- Protected-haven demand spikes — Political uncertainty + looser financial coverage = traditional gold cocktail. Traders hedge towards volatility, foreign money debasement, and monetary overreach.
The current 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 stress and cuts charges in H2 2026, gold might take a look at $6,000+ earlier than year-end.