The Digester
Week 5, Wednesday

Gold Hits Record Above $5,100 as Debasement Trade Accelerates

Bullion surged to an intraday high of $5,187.37 as the dollar weakened and investors fled sovereign bonds and currencies.

  • Gold rose as much as 3.6% to $5,187.37 per ounce, its biggest intraday gain since April.
  • The dollar tumbled after President Trump said he was not concerned about its decline.
  • Gold is up nearly 20% and silver is up more than 50% since the start of January.
  • Investors are shifting into precious metals amid a flight from sovereign bonds and currencies described as a debasement trade.
  • Market unease was heightened by geopolitical moves and policy threats including potential tariffs and criticism of the Federal Reserve.
  • Asset managers such as Amundi say investors view gold as protection for purchasing power against currency debasement.