Gold prices soar above $5000, silver prices surge12%, international relations turmoil triggers a buying frenzy.

Gold continued its surge in the background of US President Donald Trump reshaping international relations and investors fleeing sovereign bonds and currencies, with prices breaking the $5000 per ounce mark for the first time. The weakening of the US dollar boosted safe-haven demand, with gold prices rising by 2.5% on Monday, exceeding $5111.07 per ounce. A dollar index measuring the currency's performance fell by 2% over six trading days, with rumors of the US possibly assisting Japan in boosting the yen exacerbating market concerns over the independence of the Federal Reserve and the unpredictable nature of Trump's policies. Silver prices soared by nearly 12% to over $110 per ounce, the largest increase since 2008. The sharp rise in gold prices once again confirms its traditional role as an indicator of panic in the market. Gold prices had just experienced their best annual performance since 1979, with an increase of around 18% so far this year. This is mainly attributed to the so-called devaluation trade, where investors sell off currencies and US government bonds. Last week's mass sell-off in the Japanese bond market is the latest evidence of investors resisting large fiscal spending.