Key points:

• Gold hits record high above $5,300
• Fed to decide on interest rates
• Silver is a bit less aggressive

Moving away from the US dollar and from fiat currencies broadly is helping the metal add to its record market value, now above $35 trillion.

🚀 Gold Ignores Gravity

• Gold (XAU/USD) sliced through $5,300 early Wednesday and kept climbing after a 3% surge the prior session, extending a parabolic move fueled by risk aversion. At this pace, the metal’s total market value now clears $35 trillion. That is not a typo.
• The rally accelerated as the US dollar slid toward four-year lows, pushing investors out of fiat currencies and into hard assets. When confidence in paper fades, gold tends to become the default parking spot.
• More on that: vertical moves signal momentum dominance. Fundamentals matter, but flows matter more when stops get chased and ill-fated shorts scramble for cover.

💵 Dollar Trouble, Metal Flexes

• The dollar stayed under pressure after Donald Trump said the currency’s value is “great,” a comment markets interpreted as tolerance for further weakness. FX traders responded by testing that comfort zone immediately.
• A softer dollar makes dollar-priced assets cheaper globally, turbocharging demand for gold. This dynamic has turned bullion into a proxy trade against currency credibility rather than just an inflation hedge.
• Add falling US consumer confidence to the mix, and the rush toward perceived safety looks less speculative and more structural.

🏦 Fed Watch, Silver Joins the Party

• Against this backdrop, the Federal Reserve is widely expected to hold rates steady later today, but markets are already pricing future cuts as leadership uncertainty hangs over policy. Lower expected rates favor non-yielding assets like gold.
• Silver kept pace, but more conservatively, trading near $115 after tagging a fresh record earlier this week. The metal is up almost 60% year to date, showing that speculative appetite extends beyond gold.
• Big picture: this is a global flight to safety trade. Gold and silver lead the charge, and fiat currencies take the heat while traders rethink where trust actually lives.

Source: Tradingview