Gold

As the upcoming Winter Olympic Games Milano Cortina 2026 approaches, attention naturally shifts to records, rivalries, and the prestige of making it to the podium. But after the celebrations end, a practical question always resurfaces: What are those medals actually worth?

The answer depends on how you define “worth.” There’s the literal value of the metal, the tax implications that follow, and then the much bigger value that comes from status, visibility, and opportunity.

Are Olympic Gold Medals Actually Solid Gold?

Despite the name, Olympic gold medals are not solid gold. Even though the tradition of a solid gold medal was established in 1904, forging the medals 100% out of gold didn’t last long, as it became too costly after World War I. As a result, the top medal hasn’t been made of solid gold since the 1912 Olympic games.

Today, gold medals are primarily made of silver, with a relatively thin coating of pure gold on the surface. The exact specifications vary slightly, but the general formula has remained consistent. A modern Olympic gold medal typically contains 523 grams of sterling silver, with approximately six grams of gold plated on top. This allows it to look like gold and feel substantial, while also carrying enormous symbolic weight.

Silver medals are indeed solid, made of 525 grams of sterling silver. Bronze medals meanwhile contain no precious metals at all, typically containing 90 percent copper and other alloys, such as tin and zinc.

As a result, the true value of each medal comes more from the prestige of being a medalist and the opportunities it may offer than from the raw materials that comprise each medal.

What Gold, Silver, and Bronze Medals Are Worth at Today’s Metal Prices

Metal prices fluctuate constantly, so any estimate is a snapshot in time. Using current pricing, gold is trading around $4,900 per troy ounce, and silver around $85 per troy ounce. Six grams of gold works out to be worth about $945 at current prices, while the silver portion of a gold medal, about 523 grams, is worth about $1,430. Added together, the raw metal value of a gold medal currently lands around $2,375.

Silver medals, made of 525 grams of sterling silver, would be worth around $1,435, while bronze medals are worth far less from a materials standpoint. With copper currently priced at about $0.38 per ounce and a bronze medal comprising 495 grams of copper, the third-place medal would be worth less than $7 at today’s prices.

Do Olympic Athletes Have To Pay Taxes on Their Medals?

Fortunately for U.S. athletes, the tax picture has changed over time. In the past, medals and associated prize money were treated as taxable income, meaning athletes could owe federal taxes on both the cash bonuses and the fair market value of the medal itself.

That shifted in 2016, when Congress passed the United States Appreciation for Olympians and Paralympians Act of 2016. The legislation allows most U.S. Olympic and Paralympic athletes to exclude medal-related prize money from federal income taxes if their overall income falls below a certain threshold. The intent was to prevent athletes, many of whom train for years with limited financial support, from being hit with tax bills simply for winning.

Why Medals Are Worth Far More Than the Metal

If medals were only worth their metal content, they’d be impressive keepsakes, but not life-changing ones. The real value comes from what the medal represents and what it unlocks.

An Olympic medal can raise an athlete’s profile overnight, leading to endorsements, sponsorships, and paid appearances that weren’t on the table before. The impact often lasts well beyond competition, opening doors to coaching, leadership roles, and media opportunities long after the Games are over.

Those opportunities don’t look the same for every medalist—or arrive all at once. For some athletes, especially gold medalists, the exposure of winning on the sport’s biggest stage can translate quickly into major endorsement deals. For others, the payoff is more gradual, showing up as smaller sponsorships, speaking fees, or a clearer path into post-competition careers built on recognition and trust.

Winning multiple medals can also amplify the effect, creating a sustained spotlight that brands and audiences tend to value more than a single podium finish.

While the metal in an Olympic medal may only be worth a modest sum, the visibility it brings can reshape an athlete’s earning potential in ways that far outlast the Games themselves—making its true value less about what it’s made of, and more about what it makes possible.

Emma Finucane and Anna Morris won gold for Great Britain on day three of the 2026 UEC Track Elite European Championships in Turkey.

Olympic and former world champion Finucane, 23, came into the third day of action in Konya in fine form after setting a new world record for the women’s flying 200m time-trial on Monday.

In the final of the women’s sprint, Finucane’s time of 10.608 seconds was 0.045secs faster than team-mate Sophie Capewell to secure her second gold medal of the event.

Finucane said after her win: “Yesterday I wanted to execute my ride perfectly, and I did; I came away with a world record and I couldn’t believe it.

“But it doesn’t finish there, you still have to race races and the girls were really fast, there was lots of fast sprinting and to come away with this medal and with this jersey means so so much to me. “

Finucane’s Welsh compatriot, Olympic bronze medalist Morris, dominated the women’s omnium to win her third European Championship gold medal.

Morris, who said the “European jersey is really special”, finished 13 points in front of Norway’s Anita Stenberg.

Matt Bostock finished fourth in the men’s individual pursuit.

Great Britain have won seven medals in Turkey, including four golds.

If Hilary Knight is the GOAT of women’s ice hockey, then Caroline Harvey is the kid.

That isn’t just a reference to her age, 23, which makes her the seventh-youngest player on the U.S. Olympic team. The term is also used for baby goats. And with Knight, the oldest player on the U.S. team, expected to retire from Olympic competition after the Milan Cortina Games, that makes Harvey the GOAT in waiting.

“Hilary is a great role model,” Harvey said. “She did blaze that trail. It’s been exciting to see what she did, the legacy she left.”

Like the 10 world championship gold medals, most by a hockey player of either gender; the soon-to-be five Olympic appearances, most by any American hockey player; the scoring titles and MVP awards. But the real legacy she’ll leave will have little to do with any of that.

In 2019, while at the height of her career, Knight risked everything when she joined more than 200 other players in boycotting the existing women’s hockey leagues to form the Professional Women’s Hockey Players Assn. Four years later that led to the creation of the well-funded Professional Women’s Hockey League, with eight teams playing in the U.S. and Canada.

Knight said she took inspiration for that campaign from the 1999 Women’s World Cup soccer team of Mia Hamm, Julie Foudy and Brandi Chastain, which not only won the title but soon after began the decades-long fight with the U.S. Soccer Federation that eventually ended with the women getting the same pay and benefits as the men’s team.

“We credit the ‘99ers to sort of helping us with our vision and creating more equitable space,” she said. “We’re far from there but we’re taking great steps in that direction.”

In fact, women’s hockey has never been better, a popularity both Knight and Harvey hope to build on in the Olympic tournament, which begins Thursday with the U.S. facing Czechia.

“Visibility is really important; continuing to get those eyes,” said Knight, a tireless promoter of the game. “We’re going to have some new and unique viewership. With the Olympics in itself [viewers] might accidentally watch hockey and be like ‘I love this sport.’

“Just having more programming elevates the game on the global stage. And that’s really exciting.”

U.S. forward Hilary Knight skates to the bench after scoring against Canada in November 2023.

(Ross D. Franklin / Associated Press)

The game Knight, 36, is championing is really one she built, especially in the U.S. A two-time NCAA champion at Wisconsin, she’ll be going for her fifth Olympic medal — and second gold — in Milan. Yet she insists the experience never gets old.

“Every Olympics feels like my first Olympics,” she said. “Each is so unique. You’re in a different country, a different culture, just so much fun to be able to explore. The Olympics are so special, whether it’s your first or your fifth.”

These Games are likely to feel a little different, though, since they’ll end with her passing the baton to Harvey, who followed Knight to Wisconsin. The two women have more in common than just their alma mater, though.

Both were the youngest players on the team when they made their Olympic debuts, Knight as a high-scoring forward in 2010 and Harvey as a physical, offensive-minded defenseman in 2022. Both have won multiple world championships and both began their careers playing on boys teams. As children, they both told relatives they would someday play in the Olympics — a prediction that was particularly bold for Knight since women’s hockey wasn’t even an Olympic sport then.

When Harvey joined the national team ahead of the 2021 world championships, Knight shared some advice.

“She said something to the effect of ‘it’s the same game, no matter what level you’re at. Trust your instincts, play natural, play free,’” Harvey said. “That just really stuck with me.

U.S. defenseman Caroline Harvey shoots during a Rivalry Series game against Canada in November.

(Jason Miller / Getty Images)

“Hopefully at some point [I] grow into that leadership role,” she continued. “I’ve had some years now and that past Olympics, it was more of a being a sponge. I’m always trying to learn something new every day from the veterans.”

One thing she’s learned recently is how to beat Canada, which could come in handy in Milan since the U.S. will face its northern neighbors in the final game of group play, and likely a second time in the knockout rounds.

Canada has won five of the last six women’s Olympic tournaments, beating the U.S. in four of the those finals, including the most recent one in 2022. But the U.S. swept Canada in the pre-Olympic Rivalry Series, winning the four games by a combined 24-7. Knight and Abbey Murphy led the tournament in scoring with five goals each.

“When the puck drops, your heart is beating out of your chest,” Knight said of playing Canada. “You’re like ‘am I human? This is insane. This is awesome.’”

Still, when Knight finally does hang up her skates for the final time, those won’t necessarily be the memories she holds closest from her Olympic career.

“I get to do cool things with cool people on a daily basis,” she said. “What I’ve been able to accomplish in my career is incredible. And I’ve obviously played with amazing women and I’m so grateful for every opportunity that I’ve had.

“I’m just at a place where I want to embrace these lasting memories and moments with teammates and friends and family, all those people that go into this journey. That’s what I’m looking forward to.”

After that, the GOAT will give way to the kid.

Think of Mike Buckley as a kind of double agent.

Not the sinister kind, who give away state secrets for money or revenge; Buckley is privy to much lower-level intelligence. But that doesn’t mean it’s not just as valuable to the people involved.

Buckley is the Kings’ goaltender coach and his chief pupil is Darcy Kuemper, who will be playing for Team Canada in the Milan Cortina Olympic hockey tournament. Buckley will be in Milan coaching for Team USA. And if the competition goes to form, Canada and the U.S. will meet in the final.

You can see where this is going.

So would Buckley give up the goods on his NHL goalie if it meant helping his national team win a gold medal?

“I probably have a little bit more insight being with him on a day-to-day basis. But at the end of the day, the players still have to execute,” said Buckley, like Kuemper, a first-time Olympian. “So if I tell someone to shoot somewhere at a certain time or a certain spot, they’re going to have to be able to execute that.”

The answer then is maybe.

Still, that’s a dilemma Buckley will probably never face since Jordan Binnington of the St. Louis Blues, who was spectacular in goal in last year’s Four Nations Face-off, will probably start for Canada in Milan. But with the Kings sending four other players (defenseman Drew Doughty, Canada; and forwards Adrian Kempe, Sweden; Kevin Fiala, Switzerland; and Joel Armia, Finland) plus Canadian equipment manager Darren Granger to the Olympics, there’s a good chance guys who have shared a dressing room since September will be competing against one another.

Kings forward Kevin Fiala controls the puck while playing for Team Switzerland at the 2025 world championships.

(Michael Campanella / Getty Images)

The same goes for the Ducks, who are sending four players — goalie Lukas Dostal and defenseman Radko Gudas, Czechia; forward Mikael Granlund, Finland; and defenseman Jackson LaCombe, U.S. — to Milan. Ducks star Leo Carlsson, who was expected to start for Sweden, will miss the Games after undergoing surgery to repair a rare injury in his left thigh last month.

So while the Olympics may bring countries together, it also has the potential to turn teammates against one another — at least temporarily.

In the group stage of the tournament, for example, Armia and Finland will play against Kempe’s Sweden. And Canada, with Kuemper and Doughty, will face Switzerland, which is led by Fiala.

“It’s obviously going to be a little strange,” Gudas said. “It’s only for a few games. For that amount of time, you can put things aside a little bit.”

Those kinds of match-ups were rare in the last two Olympic tournaments since NHL players didn’t take part, sidelined by a dispute over insurance, travel costs and scheduling issues. This year 147 NHL players are on the 12 Olympic rosters, with all 32 NHL clubs represented.

Not all the top NHL players will be in Milan, however. Russia has been banned from the tournament because of the country’s invasion of Ukraine, meaning Alexander Ovechkin, the NHL’s all-time leading goal scorer, won’t play.

Granlund, who won a bronze medal with Finland in 2014, the last time NHL players participated in the Olympics, is glad to be back.

“It was such a cool experience,” he said. “It’s one of the biggest honors I can have as a hockey player, playing for a country in the Olympics. There’s no player in the NHL who wouldn’t go.”

That’s due in large part to the rush that comes with wearing your country’s colors on your chest.

“It’s tough to explain how much it means,” he said. “You grow up in a country like Finland, watching the national team play. As a kid you’re dreaming to play for that team.

“Every single time you put that jersey on, it’s such a pride you feel.”

Doughty, who already has two gold medals, agreed, saying the only time he sings along with the Canadian anthem is at the Olympics.

Kings defenseman Drew Doughty controls the puck while playing for Canada in the Four Nations Face-Off last year.

(Maddie Meyer / Getty Images)

“When we hear it in the NHL, I’m not singing,” he said. “But when you’re wearing a Canadian jersey, that’s one of the biggest moments you can have.”

Not just for the guys on the ice. Granger, the equipment manager, will be making his third trip to the Olympics with Canada. And the journey never gets old.

“It’s not something that you apply for. It’s something that you’re asked to do,” he said. “So I don’t take that lightly. It’s an honor.”

The equipment managers may have the most difficult job in the Olympic hockey tournament since they must prepare and maintain the sticks, skates, gloves and uniforms for 25 players, some of whom they’ve never met. That means checking in with the equipment managers of rival NHL teams to get prepared.

“We have quite a few players that are particular about certain things,” he said. “After a while, you just kind of get used to what those things are. If it’s a player that likes to use three sticks a game, then making sure he has that. If it’s a guy that likes to change gloves every other game, making sure you have enough.”

Yet if Canada wins the tournament, Granger’s reward won’t be a gold medal. Olympic rules say medals only go to the players, leaving the equipment managers, trainers and coaches — even coaches with inside information like Buckley — out in the cold.

“That’s OK,” Buckley said. “I just want the players to get one.”

Published on
02/02/2026 – 12:02 GMT+1

Gold and silver prices extended last week’s dramatic sell-off on Monday, as investors continued to digest the implications of President Donald Trump’s announcement of Kevin Warsh as the next chair of the US Federal Reserve.

The move has fuelled expectations of a more government pressure on the Fed and prompted a sharp reassessment of positions across precious metals.

Spot gold fell as much as 10% in early trading, while silver plunged up to 16%, following Friday’s rout that marked the largest intraday decline on record for the white metal.

The scale and speed of the move underscored how vulnerable the market had become after months of aggressive buying driven by geopolitical tension and bets on looser US monetary policy.

“The sharp selloff on Friday followed news that US President Donald Trump intends to nominate Kevin Warsh as the next Federal Reserve chair – a development that boosted the US dollar and reinforced expectations of a more hawkish policy stance,” said Ewa Manthey, commodities strategist at ING, and Warren Patterson, head of commodities strategy.

“While a correction was overdue after the intense rally, the scale of Friday’s decline far exceeded most expectations.”

Why the Fed matters for gold

Gold and silver are particularly sensitive to US interest-rate expectations.

Higher rates increase the opportunity cost of holding non-yielding assets such as precious metals, while a stronger dollar makes them more expensive for overseas buyers.

Warsh, a former Fed governor, has voice sentiments supportive of Trump’s vision for the Fed, including regular rate cuts.

That reassessment has been swift. Investor caution has been evident in exchange-traded funds, with silver holdings falling for a seventh consecutive session to their lowest level since November 2025.

Futures data also show speculators cutting back sharply on bullish bets, signalling a broader retreat from the sector.

“CFTC positioning shows a cooling in speculative interest across precious metals,” the ING report continued.

“Managed money net longs in COMEX gold fell by 17,741 lots last week… Speculators also cut net longs in silver… taking positioning to its lowest since February 2024.”

Margins rise, volatility bites

Market stress has been amplified by mechanical factors.

CME Group is set to raise margin requirements on COMEX gold and silver futures after last week’s historic swings, forcing traders to post more collateral or reduce exposure.

Such moves tend to accelerate sell-offs, particularly in heavily leveraged markets.

Attention is now turning to Asia, where Chinese investors have historically provided support during price dips. However, with volatility elevated and the Lunar New Year approaching, participation may be more cautious than usual.

“With volatility spiking and the Lunar New Year approaching, traders are likely to pare back positions and reduce risk,” the ING analysts said.

“Price direction in the near term will hinge on the extent of dip-buying from Chinese investors following Friday’s retreat.”

Outlook remains fragile

For now, the precious metals market remains at the mercy of macro forces, with little clarity on how quickly sentiment will stabilise.

Investors are watching US data closely for clues on real interest rates and the dollar’s next move, both of which will be shaped by expectations around the Fed’s future direction.

“Overall, volatility across precious metals is likely to remain elevated in the near term,” Manthey and Patterson said.

“For gold and silver, macro uncertainty, real rate expectations, and USD direction will continue to dominate sentiment,” the report concluded.

South Korean stocks nosedived by more than 5 percent Monday, due largely to a risk-averse sentiment following the nomination of the new Federal Reserve chair, and a sharp decline in silver and gold prices. The Korean won plunged against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) tumbled 274.69 points, or 5.26 percent, to close at 4,949.67, snapping a four-session winning streak.

The country’s main bourse operator, the Korea Exchange (KRX), issued a sell-side circuit breaker for 5 minutes around noon.

Trade volume was heavy at 568.8 million shares worth 32 trillion won (US$21.9 billion). Losers outnumbered winners 795 to 116.

Foreign and institutional investors offloaded a net 2.5 trillion won and 2.2 trillion won, respectively. Retail investors, on the other hand, went bargain hunting and snapped up a net 4.6 trillion won.

Local stocks came under selling pressure following the nomination of Kevin Warsh, seen widely as a hawkish figure, as Fed chair, and sharp declines in silver and gold prices, according to Lee Kyoung-min, an analyst from Daishin Securities.

“A sharp drop in precious metals triggered the liquidation and margin call of derivatives holding them. This in turn led to the forced liquidation of other assets, as investors went to preserve margins, further amplifying the stock market’s decline,” Lee said.

International gold prices have experienced a sharp decline of over 10 percent in the past few days, while sliver prices plunged over 30 percent.

The local gold market was affected, too, with gold traded on the KRX falling to its lowest permissible limit of 10 percent Monday. It marked the first time KRX gold prices fell to the floor since the market opened in March 2014, according to the bourse operator.

“There is a possibility the benchmark KOSPI could take a breather, considering its sharp gains recently, but a daily decline of 4 to 5 percent seems excessive,” Han Ji-young, a researcher at Kiwoom Securities, said.

Shares closed lower across the board.

Market top-cap Samsung Electronics declined 6.29 percent to 150,400 won, while its chipmaking rival SK hynix tumbled 8.69 percent to 830,000 won.

Top car marker Hyundai Motor retreated 4.4 percent to 478,000 won, bio firm Celltrion lost 3.33 percent to 203,000 won, and defense giant Hanwha Aerospace closed down 4.69 percent to 1,239,000 won.

Financial shares were among the few winners.

Hana Financial Group added 3.2 percent to 103,300 won, and Meritz Financial Group inched up 0.69 percent to 117,400 won.

The Korean won was quoted at 1,464.3 won against the U.S. dollar at 3:30 p.m., down 24.8 won from the previous session.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 1.4 basis points to 3.152 percent, and the return on the benchmark five-year government bonds rose 1.2 basis points to 3.448 percent.

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As the Trump administration ploughs forward with its incendiary policies, European trust in the US government is fading.

Amid tariff threats and pledges to conquer Greenland, citizens and politicians in Europe are unsettled — questioning a long-standing alliance.

Marie-Agnes Strack-Zimmermann (FDP), chair of the Defence Committee in the EU Parliament, claims to have an answer that is “worth its weight in gold”. In this case, the expression is more literal than figurative.

Around 1,236 tonnes of German gold, worth more than €100bn, are sitting in vaults in the US. Strack-Zimmermann has now announced that, in view of Trump’s recent political manoeuvres, it’s no longer justifiable to leave them be. This has reignited a fierce debate: to retrieve or not to retrieve?

The demand to bring gold back to Germany has been around for a long time, with some surveys suggesting that many citizens are in favour of the move. Similar debates are happening in Italy, which has the third-largest gold reserves in the world after the US and Germany.

Why does Germany hold gold in the US?

Germany’s gold reserves amount to around 3,350 tonnes. About 36.6% of this is in the US, a legacy of the Bretton Woods system of fixed exchange rates after World War II.

“At the time, all exchange rates were tied to the dollar, and the dollar was tied to gold,” Dr. Demary, senior economist for Monetary Policy and Financial Markets at the German Economic Institute (IW), told Euronews.

“Germany had large export surpluses with the US, so we accumulated a lot of dollars. To keep exchange rates stable, we exchanged those dollars for gold. That’s how these reserves were built up.”

During the Cold War, it was also practical to store gold abroad, as the US was considered a safe place in case of conflict with the Soviet Union. Over the years, some gold has been repatriated. By 2017, 300 tonnes were brought back from New York, 380 tonnes from Paris, and 900 tonnes from London.

This was part of a Bundesbank plan, unveiled in 2013, to store half of Germany’s gold reserves in Germany from 2020 onwards.

Bringing in the gold treasure: What are the risks?

Strack-Zimmermann and other politicians and economists cite Trump’s unpredictable trade and foreign policy as the reason for moving the gold out of the US.

“Of course, there is always some risk when you keep assets abroad,” said Demary. For example, there is a storage risk if a break-in occurs. But this risk exists whether the gold is stored abroad or in Germany.

“Another possible scenario is that the US government, due to tight currency reserves, could prevent the gold from being transferred,” he explained.

To ensure the safety of gold holdings, the Bundesbank has had to make frequent trips to New York in the past to take an inventory.

“It makes sense to leave this gold in the US in case we have a banking crisis here and need to obtain dollars,” said Demary.

Retrieving the gold could not only be logistically complex, but also risky.

“The gold would have to be transported in armoured vehicles onto a ship, which would also need to be guarded, and then brought back to Frankfurt under security,” added Demary. “There could be robberies, the ship could sink, or the cargo could be seized.”

Is Strack-Zimmermann’s demand pure populism?

Is Strack-Zimmermann’s demand pure symbolic politics? “I think so,” said the economist. “Perhaps it was a political move in response to the tariff threats, saying, ‘We’re bringing our gold back now.’”

According to the economist, it is also possible that Strack-Zimmermann estimated the magnitude of this gold value to be somewhat greater than it really is. In any case, the gold is currently safe in New York, even if Trump wanted to use it to exert pressure on Germany.

“The Federal Reserve is actually independent in its monetary policy. The US government cannot simply intervene. They would have to change laws first,” explained Dr Demary.

Even in the absolute worst case, if the US refused to release the gold, there would still be the option to go to court and enforce its return or receive compensation in dollars, said Demary.

“You have to weigh up the pros and cons and I would say the advantages of leaving the gold in the US outweigh the disadvantages,” he told Euronews.

Gold has risen more than 20% since the start of the year, surpassing the significant $5,500 milestone this week.

The precious metal’s rally, seen alongside a lift in commodities such as silver and platinum, is driven by a number of interlinking factors — including geopolitical tensions, rising government debt, and an uncertain outlook for interest rates and inflation.

Gold’s appeal is linked to the narrative that it is a safe haven asset, acting as a “hedge against inflation”. It typically increases in value when the dollar declines, it’s easily sold, and it’s also a tangible, finite commodity.

These factors are significant at a time when questions are being raised about the dollar, as well as fiat currencies like the Japanese yen. As government debt rises, so do fears around inflation and fiscal stability.

In the US, incendiary policies from the Trump administration are increasing market jitters around the health of the economy, prompting what some analysts view as a “sell America” trade. In recent weeks, the president has threatened to conquer Greenland, hinted at US intervention in Iran, sought to influence policy at the Federal Reserve, and launched an attack on Venezuela. To top that off, he’s also threatened more tariffs on trading partners, bringing back a well-worn tactic from 2025.

Although analysts argue that the dollar will not be unseated as the world’s reserve currency anytime soon, it seems investors are diversifying away from the greenback. The US’ next moves remain uncertain, and no one wants to be caught in the crosshairs. As an alternative to fiat currencies, gold may seem like a strong portfolio option.

“Investors previously bought US Treasuries as they were viewed as being quite risk-free. But especially because of the way that some wealth has been weaponised, certain countries are becoming more careful about how they allocate their capital,” said Simon Popple, managing director at Brookville Capital. “The dollar debasement helps the gold price,” he told Euronews.

Even so, Popple and other analysts stress that a major factor lifting the bullion price is far less complicated. As gold continues to make headlines, investors are caught up in the momentum, sparking a buying frenzy.

“People are naturally drawn to things they see moving and they’ve seen gold have an astonishing rally,” said Chris Beauchamp, chief market analyst at IG. “It’s bound to lead to an ignition of interest.”

He added that while gold has beneficial investment properties, the metal’s ability to hold its value is overstated, particularly in the short term. Gold’s position in the market notably shifted after former US president Richard Nixon decided to end direct dollar convertibility to gold in 1971. Put simply, countries no longer fixed their currencies to a specified amount of the precious metal.

“The gold standard is still invoked to suggest the metal is some kind of totemic asset we should have because it’s a fixed store of value. It’s not,” concluded Beauchamp.

Kenneth Lamont, a principal in Morningstar’s Manager Research Department, reiterated this message, also drawing comparisons between gold and crypto. While both are limited in supply, they are both “incredibly volatile”, he stressed.

“If you’re using either crypto or gold to buy something, it might be 30% less from one day to the next. It’s not actually a good store of value in the short term.”

While gold is much more established than bitcoin, and it has historically performed well over the long term, analysts stress that the unpredictability of both assets means the death knell is not yet ringing for fiat currencies.

Whether bullion’s price will continue to climb in the immediate future is a guessing game. Even so, given the precarious nature of global politics, it seems the metal may still have further to run.

Federal Reserve Chair Jerome Powell pushed back against political pressure on the US central bank on Wednesday and defended its independence, urging the next chair to “stay out of elected politics”. Markets, however, appeared unconvinced, accelerating a sell-off in the dollar as gold and silver hit fresh record highs.

“Don’t get pulled into elected politics. Don’t do it,” Powell told reporters.

The reaction followed the Federal Reserve’s latest decision to leave interest rates unchanged in a range between 3.5% and 3.75%.

Asked whether the Fed was drawing any macroeconomic signal from the explosive rally in precious metals, Powell played down its significance.

“We don’t take much message macroeconomically,” Powell said. “The argument that we are losing credibility is simply not the case. If you look at where inflation expectations are, our credibility is right where it needs to be.”

He highlighted that the Fed does not “get spun up over particular asset price changes”, although it continues to monitor markets closely.

Markets react

The market reaction sharply contradicted Powell’s message.

Gold jumped to $5,500 per ounce, setting a new all-time high, while silver climbed above $117 per ounce.

Gold is now up over 20% this month, on track for its strongest monthly performance since January 1980.

Silver’s gains have been even more dramatic, with prices already up around 55% this month — the strongest monthly rise on record.

Meanwhile, the US dollar index, which tracks the greenback against a basket of major currencies, fell to levels last seen four years ago.

“The next couple of days will show whether investors have concluded that the dollar needs to go lower and that today’s bounce is a selling opportunity,” said James Knightley, chief economist at ING.

The dollar is now more than 10% below its 2025 highs, weighed down by persistent macro headwinds, including global central bank diversification away from US assets, widening fiscal deficits, recurring questions over Fed independence, and expectations of further policy easing.

‘Is gold the new bitcoin?’

Veteran Wall Street economist Ed Yardeni linked the rally to politics, suggesting its sustained popularity could make “gold the new bitcoin”.

Yardeni argued that US President Donald Trump, a vocal supporter of cryptocurrencies, appears to be inadvertently fuelling the rise in gold prices.

On Tuesday, Trump said “the dollar is doing great” when asked whether the currency had fallen too much, signalling he is comfortable with a weaker greenback.

“A weaker dollar may put upward pressure on US inflation, which would also boost the price of gold,” Yardeni said.

Commodities surge beyond gold and silver

The rally has spread across the broader commodities market.

Platinum climbed above $2,900 per ounce for the first time on record this week and is already up 33% this month. Palladium, which benefits from stronger industrial demand, rose to a four-year high and is up more than 22% year to date.

Copper also surged, hitting a record $6.30 per pound on Thursday.

Across commodity markets, investors are increasingly positioning for prolonged dollar weakness, amid perceptions that US institutions are willing to tolerate — or quietly accept — the shift.

Euro stronger, equities mixed

In Europe, the euro traded near $1.1950, edging lower after briefly breaking above $1.20 earlier in the week following Trump’s comments.

The single currency has now risen for three consecutive months against the dollar and is up around 15% year on year.

European equities were mixed. France’s CAC 40 and Italy’s FTSE MIB gained around 0.5%, while Germany’s DAX fell over 1%.

Frankfurt’s losses were led by SAP, which slid 16% — its biggest one-day drop since October 2020 — after weaker-than-expected cloud sales and a cut to 2026 revenue guidance outweighed in-line fourth-quarter results.