Another day, another record high for gold (XAUUSD). On Wednesday, the precious metal surpassed $5,300 per troy ounce for the first time, driven by a weak U.S. dollar spurred by President Trump shrugging off concerns.
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“I think it’s great,” Trump said when asked by a reporter if the dollar had fallen too much. “The dollar’s doing great.” Gold tends to benefit when the dollar weakens, as it becomes cheaper for foreign buyers and more attractive as a store of value.
Dollar Dips, Then Recovers After Bessent Eases Concerns
On Tuesday, the dollar, as measured by the U.S. Dollar Index, fell by 1.3%, marking its worst performance since April 2024. The index tracks the dollar against a basket of six major foreign currencies.
The greenback is staging a partial recovery today after Treasury Secretary Scott Bessent sought to ease fears and emphasized that the U.S. would maintain its strong-dollar policy without involving itself in foreign currency affairs.