Gold Prices Surpass $5,000 for the First Time: Metal Rally Has Begun!

Historic Rise in Gold Prices

Gold has reached a historic level due to geopolitical tensions and increasing concerns over fiscal spending, leading to a rise in safe-haven demand. In international markets, it has gained value, surpassing 5,085.7 dollars for the first time, crossing the 5,000 dollar mark. Since the beginning of this year, gold prices have seen an increase of 17%.

Effects of the Rise in Metal Prices

The weak dollar and pressure on Japanese bonds have increased metal demand, contributing to record levels for other precious metals like silver and platinum. This rise has also had a positive impact on stock markets. Asian mining and metal producers have started the week strongly, gaining strength from this increase.

Market Movements

Today, the MSCI Asia Pacific index saw strong gains in materials and mining-weighted stocks. Shares of Korea Zinc Co. rose by up to 14% in Seoul, while Zhongjin Gold Corp. gained 10% in Shanghai. The official holidays in Australia and India have led to reduced liquidity in the Asian session, but interest in mining stocks has remained strong.

Long-Term Trends and Investor Psychology

Frank Benzimra, head of Asian equity strategy at Societe Generale, emphasized that the rise in metals is a structural trend that has been developing for several years and that increased defense spending has boosted demand for base metals. In addition, investments in artificial intelligence are also supporting industrial metals like copper and aluminum.

Currency Front and Metal Market

The weakness of the dollar against major currencies has increased the search for safe havens and the desire for protection against inflation, accelerating metal purchases. As investors price in concerns over the U.S. monetary policy and fiscal position, demand for gold and silver continues to rise. Despite short-term fluctuations, supply constraints and geopolitical uncertainties are providing a supportive environment for the metal markets.