Comment: Gold hits new record high as weak US dollar fuels safe-haven demand

Comment from Nikos Tzabouras, Senior Market Analyst at Tradu.com, after gold topped $5,000 an ounce for the first time driven by a weakening US dollar and a surge in safe-haven demand.

This comes as investors reacted to mounting pressure on the greenback amid concerns over Federal Reserve independence, speculation around government intervention to support the yen and rising fiscal risks, including fears of another US government shutdown.

Nikos believes these factors have amplified gold’s appeal as confidence in major currencies continues to erode and trade and geopolitical tensions persist. He also notes that while the outlook remains bullish, bullion remains vulnerable to near-term volatility and profit-taking as speculative positions build.

Nikos Tzabouras, Senior Market Analyst at Tradu.com, commented:

“A weak US dollar has driven gold to new all-time highs, amid growing speculation over FX intervention to support the yen and renewed risks of a US government shutdown. These developments add to headwinds from concerns over Federal Reserve independence and market bets on rate cuts.

“These factors reinforce structural demand drivers linked to de-dollarisation and currency debasement, supporting gold’s rally. Rising fiscal concerns in the US, Japan and other major economies continue to erode confidence in major currencies, further bolstering bullion. At the same time, gold continues to attract safe-haven flows amid persistent trade and geopolitical tensions, as President Trump threatens Canada with new tariffs and maintains pressure on Iran.

“Nonetheless, bullion remains vulnerable to profit-taking and volatility, particularly as speculative positions build. Even so, the long-term bullish bias is underpinned by structural drivers supporting sustained demand.”