Gold Nears $5,000, Silver Breaks $80 — and the Dollar Is Losing Its Grip on Markets

As geopolitical tensions rise, the US dollar (USD), long considered the market’s default safe haven, is failing to respond in the way it has historically.

Meanwhile, gold (XAU) and silver (XAG) are flashing signals that extend far beyond a typical commodities rally.

Gold Hits Records As Silver Explodes, But Markets Are Hedging Something Bigger Than Inflation

Instead, capital is flowing decisively into hard assets, pushing gold toward the $5,000 mark and silver above $80, levels that are forcing investors to reassess old macro assumptions.

Gold (XAU) and Silver (XAG) Price Performances. Source: TradingView

Gold stock analyst Garrett Goggin highlighted the anomaly, noting that during previous US military escalations, the dollar almost always strengthened as investors rushed toward perceived safety. This time, the opposite occurred.

“The USD used to spike higher when the bombs dropped. Not anymore,” Goggin said, pointing to a sharp dollar pullback even as gold and silver surged.

Indeed, while gold and silver prices recorded God Candles on Monday, the US dollar index nosedived, dipping to 98.53 as of this writing. The divergence suggests growing skepticism toward the dollar’s role as a geopolitical hedge.

US Dollar Index (DXY) Performance. Source: TradingView

The price action itself is historic. Economist and long-time precious metals advocate Peter Schiff noted that gold has cleared $4,560 for the first time ever, placing it closer to $5,000 than $4,000.

Silver, meanwhile, has jumped above $84, posting one of its strongest relative performances in decades. The simultaneous breakout across both metals is unusual and typically associated with periods of deep monetary or systemic stress.

Analysts argue that silver’s move is not being driven solely by speculative frenzy. Synnax co-founder and COO Dario pointed to silver entering contango—a condition where futures prices trade above spot prices—as a potential signal that large corporate and industrial buyers are entering the market.

According to Dario, this behavior suggests companies are hedging against future supply shortages and rising costs. It indicates real-economy demand rather than short-term trading excess.

Silver is also trading in contango now, this might signal corporate buyers are now turning to buy futures in size to start hedging the risk of not having enough financial resources to keep securing physical supply at higher and higher prices