Record Gold at $4,689 and Silver at $94: Precious Metals Rally as Basket of Currencies Shows Dollar Weakness

Precious metal markets delivered remarkable performances on Monday, achieving unprecedented price milestones alongside notable dollar weakness against major currencies. Gold touched a record high of $4,689 per ounce before settling at $4,671, representing a solid 1.6% gain. Silver’s rally proved even more spectacular, surging to an all-time peak of $94.08 per ounce and maintaining a 3.6% advance to close at $93.15 as safe-haven demand combined with currency market dynamics.
Currency markets reflected tariff uncertainty through dollar weakness, with the greenback declining 0.3% against a basket of major currencies including the euro, yen, and pound. This dollar retreat occurred despite American markets remaining closed, suggesting international currency traders view Trump’s tariff threats as potentially damaging to American economic interests and dollar strength. The combination of dollar weakness and precious metal strength created particularly dramatic gains for non-dollar investors purchasing gold and silver.
European equity markets demonstrated widespread weakness, with France’s Cac index registering the most significant decline at 1.8%, followed by Germany’s Dax and Italy’s FTSE MIB each falling 1.3%. Britain’s FTSE 100 showed marginally better performance with a 0.4% loss. The automotive sector bore the brunt of investor anxiety, with premium German manufacturers and European conglomerates experiencing losses approaching or exceeding 2%.
Currency analysts note that dollar weakness against a basket of currencies reflects concerns that tariff policies may undermine American economic relationships and potentially trigger retaliatory measures harmful to US exports. The 0.3% decline represents meaningful movement in typically stable major currency relationships, suggesting genuine market concern about tariff implications. Historically, major tariff announcements have produced mixed dollar effects depending on whether markets view policies as strengthening or weakening American economic position—Monday’s weakness suggests current market verdict leans negative.
Economic forecasting models project tangible consequences for European growth, with baseline scenarios estimating 0.2 percentage point GDP reductions. Currency market dynamics add additional complexity, as dollar weakness potentially mitigates some European export challenges while simultaneously reflecting global economic uncertainty. British economists warn of GDP contractions potentially reaching 0.75%, while precious metal analysts emphasize that the combination of dollar weakness and safe-haven demand—both driven by tariff uncertainty—creates particularly supportive conditions for gold and silver, with Monday’s 0.3% dollar decline amplifying precious metal gains for international investors.