Gold rose by as much as 1.3% on Wednesday, following a 3.4% jump the previous day—the largest daily gain since April. U.S. President Donald Trump said he is not concerned about the decline in the value of the dollar, which has fallen to its lowest level in four years. This drop, combined with heightened geopolitical uncertainty and investors moving away from currencies and U.S. Treasuries, has triggered a surge in investment demand for precious metals.

Gold is up more than 20% since the beginning of the year, surpassing $5,000 earlier this week for the first time. Over the same period, silver has posted gains of more than 50%.

The sharp sell-off in Japan’s bond market is the latest example of growing concerns over heavy public spending, while speculation that the U.S. may intervene to support the yen has weighed further on the dollar, making precious metals cheaper for most buyers. The U.S. dollar index fell 1.1% on Tuesday, marking its largest single-day decline since April.

Trump told reporters in Iowa on Tuesday that the dollar is “doing very well” and that he expects currency values to fluctuate. “No, I think it’s great,” he said when asked whether he was concerned about the currency’s losses.

Political Uncertainty Fuels Market Turmoil

Actions by the Trump administration—including threats to annex Greenland, military intervention in Venezuela, and renewed attacks on the independence of the Federal Reserve—have unsettled markets in recent weeks. The U.S. president has also threatened to raise tariffs on South Korean products and impose 100% tariffs on Canada should Ottawa strike a trade agreement with China.

Meanwhile, bond traders are increasing bets on a shift toward lower interest rates by the Federal Reserve, amid expectations that BlackRock’s Rick Rieder may replace Jerome Powell as Fed chair. The Wall Street veteran has advocated an aggressive approach to cutting borrowing costs. A lower-rate environment tends to favor precious metals, which do not generate interest income.

Central Banks, ETFs and Crypto Giants Join the Rally

Gold’s rally has also been supported by increased purchases from central banks and inflows into gold-backed exchange-traded funds. Its appeal is further reflected in positioning data, with options traders bracing for additional gains in a market where few are willing to bet against the upside. Implied volatility in Comex gold futures climbed to its highest level since the peak of the Covid-19 pandemic in March 2020.

Even cryptocurrency giants are participating in the rally. Tether Holdings has now become the world’s largest private holder of gold outside banks and governments, quietly emerging as a major player in the global gold market over the past year. The company holds around 140 tons of gold—most of it owned outright—according to CEO Paolo Ardoino in an interview with Bloomberg.

Meanwhile, silver rose nearly 3%, approaching its all-time high of $117 per ounce, which was recorded on Monday.