Gold Hits $5,000 for First Time — Three Risks Behind the Panic

Gold reached an unprecedented $5,000 per ounce, with silver also climbing significantly, reflecting a major flight to safe-haven assets due to eroding trust in the global financial system, as noted by TD Securities strategist Daniel Ghali. The rally is fueled by a weakening dollar amid political pressures on the Fed, reduced Treasury yields due to expected rate cuts, and significant gold purchases by central banks like China and Poland. Investors are also wary of high stock valuations reminiscent of the dot-com bubble.

Markets are currently bracing for three specific risks: a potential US-Canada-China tariff clash, where President Trump threatened 100% tariffs on Canada over trade agreements; the threat of coordinated yen intervention, signaled by the New York Fed inquiring about exchange rates; and rising odds of a US government shutdown as Democrats oppose funding bills over recent civilian shootings by ICE agents.

Key events this week include the Fed's FOMC decision, the US budget deadline, and major tech earnings, all contributing to high volatility, which is already evidenced by surging Bitcoin trading volume as investors seek safety.

(Source：BeInCrypto)