Gold Smashes $5,000, Will It Get To $6,000 This Year?
Gold has soared past $5,000 for the first time, and could hit $6,000 by the end of the year as the current situation stands, predicts one of the world's largest independent financial advisory organizations.
Nigel Green, CEO of deVere Group, says the metal's explosive rise signals a profound shift in how global investors perceive political risk, debt, and currency stability.
The rally has unfolded against a backdrop of escalating geopolitical tension and policy realignment since Donald Trump returned as US president.
His administration's aggressive stance on trade, defence, and alliances has altered global expectations, creating volatility across currencies and government bond markets.
The surge also reflects mounting concern over government borrowing. Debt levels across major economies continue to rise, with fiscal expansion now entrenched as a political strategy. Investors are increasingly questioning whether bonds can protect purchasing power in such an environment.
Bond market stress has intensified this shift. Volatility in Japan's government bond market and upward pressure on US and European yields have unsettled investors who once relied on sovereign debt as the foundation of portfolios.
Central banks have amplified the rally through persistent accumulation. Official sector purchases have exceeded a thousand tonnes annually in recent years as countries diversify reserves away from the dollar and euro.
Private investors have followed. Exchange-traded funds, institutional portfolios, and retail buyers have all increased allocations as macro uncertainty intensifies.
Currency dynamics have further accelerated the rally. Concerns over fiscal discipline, political risk, and monetary policy credibility have weighed on major currencies, strengthening demand for assets perceived as independent of government control.
Forecasts across the investment community increasingly point higher. Several major banks and analysts see prices moving toward $6,000 per ounce within months if current conditions persist, with longer-term scenarios extending significantly beyond.
For investors, the rally carries strategic implications. Traditional diversification built around equities and bonds is under pressure, while real assets and inflation hedges gain relevance.
He argues the surge also reflects a broader confidence signal.
The political economy backdrop reinforces the trend. Rising living costs, fiscal populism, and geopolitical fragmentation are reshaping investor behaviour and risk preferences.
Volatility is likely to persist, and gold's role as portfolio insurance will remain prominent as macro uncertainty continues.
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