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Gold prices surged past the $5,000 mark for the first time on Monday, climbing more than 2% to $5,111.11 per ounce amid a broader rally in precious metals, driven by rising global uncertainty and a weakening U.S. dollar.
Silver soared over 5% to a new record of $109.46 per ounce, while platinum rose nearly 3% to an all-time high of $2,910.67. Palladium also advanced, gaining 2.5% to $2,092.59.
A mix of geopolitical risk, elevated inflation, and strong central bank demand for safe-haven assets remains a key driver of the rally. Market anxiety has intensified following U.S. President Donald Trump’s comments on potential intervention in Venezuela and rising tensions with Iran. At the same time, concerns over a possible U.S. government shutdown have added to safe-haven flows.
The U.S. Dollar Index dropped to 97, contributing to the rise in commodity prices. Traders expect the Federal Reserve to keep interest rates unchanged at its upcoming policy meeting this week, after cutting rates in previous rounds earlier in the year.
The Japanese yen rose more than 1% to 153.89 per U.S. dollar in Asian trading, its strongest level since November, following signs of possible joint intervention between Tokyo and Washington.
Reports emerged that the Federal Reserve Bank of New York had checked with traders on recent yen exchange rate movements, fueling speculation that U.S. authorities may back Japanese efforts to stem the currency’s decline. Japan last intervened in 2024 when the yen fell to 160 per dollar.
Equity markets across Asia were mixed. Tokyo’s Nikkei index fell nearly 2%, with exporters hit hard by the stronger yen. South Korea’s Kospi dropped by almost 1%, and Hong Kong slipped 0.2%, while the Shanghai Composite closed flat.
Oil prices continued to rise, with Brent crude edging up to $65.4 per barrel and West Texas Intermediate hitting $61. Both benchmarks had climbed nearly 3% on Friday after Trump stated that a U.S. naval "armada" was en route to the Gulf region, heightening concerns about military escalation with Iran.
Digital assets continued to decline on Monday, reflecting broader market caution. Bitcoin slipped 1% to around $87,600, Ethereum dropped 2.4% to $2,864, XRP lost 1% to $1.87, and Solana fell 3.3% to $122.
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