GOLD and silver hit new all-time highs overnight, with the former hitting $4,583.34 and the latter $84.43 at the time of writing. One trader said: “Venezuela, Trump’s threats of military action in Iran and now a criminal investigation against the chair of the US Federal Reserve could see $5,000 gold sooner rather than later.”
The new highs and the renewed rush to safe haven assets follows growing tensions in Iran and the prospect of US military action — and the US Justice Department launching a criminal probe into US Federal Reserve chairman, Jerome Powell.
While the criminal indictment is based on works and renovations at US Federal Reserve buildings, Powell, in a video statement, responded: “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.”
Anti-BRIC sentiment
David Belle, Founder and Trader at Fink Money said: “The more anti-BRIC sentiment there is, the higher gold and silver will go. It really is that simple. The central banks of these nations will actively be looking at holding gold more rather than dollars since this gives them more non-USD liquidity.
“The Chinese central bank has been a huge buyer of gold since Trump’s election win in 2024, and they are likely watching geopolitical events unfold with an extreme sense of fear since the US is simply railroading them at every juncture.
“Venezuela, Trump’s threats of military action in Iran and now a criminal investigation into the chair of the US Federal Reserve could see $5,000 gold sooner rather than later.”
Anita Wright, Chartered Financial Planner at Ribble Wealth Management, added: “Gold and silver printing fresh all-time highs overnight is not a “one-factor” story. Yes, geopolitics is adding rocket fuel, but the bigger issue is confidence: confidence in central banks, in fiscal discipline, and in the independence of monetary policy.
“Add in the quieter, structural driver: central banks continuing to diversify reserves. Recent reporting suggests the Reserve Bank of India has reduced US Treasury holdings while adding to gold reserves, and World Gold Council data continues to show central bank buying momentum.
“It is less about short-term headlines, more about the long-term erosion of purchasing power and trust in fiat currency frameworks. Could we see $5,000 gold and $100 silver sooner than expected? It is possible, but it will not be a straight line.
“When markets break to new highs, momentum often means they can overshoot, but they can also snap back hard on profit-taking and positioning.”
Central bank buying a key driver
Rick Kanda, Managing Director at The Gold Bullion Company, agreed that central banks buying up gold at scale is a key driver of current price highs.
He said: “Global central banks are expected to maintain their gold buying momentum, which will be key to gold hitting that $5,000 value mark.
“Rising geopolitical tensions between countries across the globe will continue to drive investors to seek safe-haven assets like gold that will continue to retain its worth during uncertain times.
“It’s predicted that by the end of 2026, gold could rise to $5,000 per troy ounce and, thanks to its rise throughout 2025, I fully expect this could be the case.
“Overall, it looks to me that 2026 will be another extremely successful year for gold investment that’s bound to be a part of many investment portfolios.”
De-dollarisation trend
Tony Redondo, Founder at Newquay-based Cosmos Currency Exchange, said: “The “bullion boom” of 2025 has surged into 2026, driven by a triple engine of macroeconomic, geopolitical and industrial factors.
“Safe haven buying spiked following the US military operation in Venezuela and President Maduro’s detention, and now Iran and the actions towards Powell have accentuated that shift.
“Simultaneously, a “de-dollarisation” trend has seen central banks in Poland, India and China aggressively swapping dollar reserves for gold.”
