Gold Nears $5,000 Milestone as Geopolitical Tensions Fuel Rally
Gold prices surged to a historic high of $4,888 per troy ounce Wednesday, flirting with the $5,000 psychological threshold before modest pullbacks. The rally reflects mounting institutional demand, with JPMorgan noting gold's share of central bank reserves hit record levels in 2024.
Market dynamics reveal a classic flight to safety: The dollar-debasement trade regained prominence as investors hedged against geopolitical uncertainty surrounding US-EU relations and commodity supply chains. While equities recovered from early-week volatility, precious metals maintained their haven appeal.
Silver mirrored gold's momentum before cooling alongside risk assets. The metals complex now faces a critical test - whether 2024's blistering performance (silver +146%, gold +58%) can sustain amid shifting macro conditions.
