Gold Breaks $5,100 Barrier as Safe-Haven Buying Surges

Gold prices pushed past $5,100 an ounce on Sunday in electronic trading, drawing investors worried about troubles in places like Greenland, Venezuela, and the Middle East. The jump happened as fiscal worries grew and stock markets wobbled, with the February gold contract reaching $5,078.50 before settling after a strong week.

Background

Gold has climbed a long way in the past year, hitting levels no one saw before. It started picking up speed after key events tied to U.S. policy changes. Back in January 2025, right after the presidential inauguration, gold began to rise steadily. Then in April, new tariffs called 'Liberation Day' tariffs hit markets hard. Stock indexes dropped that day, and gold touched a record before pulling back a bit.

Silver moved too, but gold led at first. The gold-to-silver ratio jumped to around 106, showing silver looked cheap compared to gold. Over the next months, silver started catching up with steady gains.

By early June 2025, both metals got a lift from the One Big Beautiful Bill Act. That bill had a 'Revenge Tax' part that scared off some foreign buyers, sending more money into gold.

Late August brought more action when threats came out to remove a Federal Reserve governor. People started questioning if the central bank could stay independent from politics. That pushed folks toward gold and silver as safe spots.

Silver got extra help in November when the U.S. Interior Department listed it as a critical mineral. The metal has uses in money and industry, like making solar panels.

This year, things heated up fast. In the first weeks of 2026, the U.S. arrested Venezuela's President Nicolás Maduro. At the same time, talks started about tariffs on countries against a U.S. plan for Greenland. These moves added to the appeal of precious metals.

Gold ended Friday at $4,979.70, up 1.4% that day and 8.4% for the week—its best week since early in the COVID time. Silver closed Friday at $101.33, up nearly 5.2%, and jumped to $107.20 on Sunday. It gained 14.5% over the week.

Key Details

The price for gold now sits more than 100% above its 200-day moving average. That stretch shows how fast it has run up, and some traders are starting to sell off positions.

Silver's rise ties to safe-haven demand and buying from retail investors in places like China and New York. Fears of U.S. tariffs on solar panel materials helped too, since silver goes into those.

Both metals have seen huge runs. Gold is up nearly 14% this year after 40% in 2025. Silver has gained over 25% in 2026, after more than doubling last year.

Recent Trading Moves

On Sunday, gold's February contract broke $5,000 for the first time, peaking at $5,078.50. It followed silver's Friday jump past $100.

Experts point to headlines driving short-term swings. Greenland issues one day, Iran or Venezuela the next, or Federal Reserve worries after that.

"Headlines matter in the short term—Greenland today, Iran or Venezuela tomorrow, Federal Reserve independence the day after," said Stephen Innes, managing partner at SPI Asset Management.

Gold bugs and silver fans long predicted this kind of move if paper money faced trouble. They saw a rush to hard assets like these metals.

Banks like Goldman Sachs now see gold hitting $5,400 by year-end. They count on more buying from private investors and central banks.

What This Means

Higher gold and silver prices signal bigger fears about world stability. Investors pull back from stocks and currencies when risks like arrests, tariff threats, and regional fights grow.

For everyday people, this means jewelry and coins cost more. Industries using silver, like solar power, face higher bills, which could slow green energy projects or raise prices for panels.

Central banks keep buying gold, adding to demand. Private buyers join in, especially as trust in fiat money dips amid fiscal debates.

The fast climb leaves room for pullbacks. Gold's big gap from its average means it could snap back if news calms down. Silver looks unsteady too after its sharp rise.

Markets watch for more U.S. policy steps. Tariff plans or central bank fights could keep pushing prices up. A supply shortage for silver looms in coming years, supporting longer gains.

Gold's weekly win matches tough times like 2020, when uncertainty ruled. Silver's best week since late 2025 shows the same rush to safety.

Traders eye short-term targets around $5,100 to $5,250 for gold. Some see even higher in the first quarter, maybe with a dip along the way.

Fiscal concerns play in too. Debts and spending plans make people doubt currencies, boosting metal demand. Geopolitical spots from the Middle East to the Americas keep the pressure on.

This run puts gold and silver at the center of how markets handle risk right now. Buyers see them as stores of value when other options falter.