Gold just hit $5,590—an all-time high. And it didn’t happen by accident. The chart tells the story: a steady climb since August 2025, accelerating sharply in early 2026. One major catalyst? Donald Trump’s renewed push for lower interest rates.
Let’s be clear: Trump isn’t setting Fed policy—but his rhetoric matters. With the 2024 election behind him and a second term underway, he’s openly calling for rate cuts, arguing that high borrowing costs are hurting growth and small businesses. The market is listening.
Why does this help gold?
- Real yields drop — Gold pays no yield. When nominal rates fall and inflation stays sticky (as it has), real rates turn negative. That makes holding gold more attractive versus bonds or cash.
- Dollar weakness — Lower rates typically weaken the USD. Since gold is priced in dollars, a softer greenback lifts its value globally—especially for non-U.S. buyers.
- Safe-haven demand spikes — Political uncertainty + looser monetary policy = classic gold cocktail. Investors hedge against volatility, currency debasement, and fiscal overreach.
The recent surge isn’t just sentiment—it’s technical too: the breakout above $5,000/oz (and the run-up to $5,590) triggered algorithmic buy orders and stop-loss hunting. Momentum feeds on itself.
Bottom line: if the Fed caves to political pressure and cuts rates in H2 2026, gold could test $6,000+ before year-end.
