As geopolitical tensions rise, the US dollar (USD), long regarded as the primary safe haven on international markets, is no longer reacting as it did in the past.
Meanwhile, gold (XAU) and silver (XAG) are sending signals far beyond the typical commodity rally.
Gold is setting records and silver is surging sharply
Instead, capital is clearly flowing into hard assets, pushing gold toward $5000 and silver above $80. This situation is forcing investors to reconsider long-held macroeconomic assumptions.
Gold market analyst Garrett Goggin has drawn attention to this anomaly. He noted that during previous military escalations in the U.S., the dollar almost always strengthened as investors sought safety. This time, it's the opposite. Pointing to the sharp decline in the dollar while gold and silver rise, Goggin wrote:
"The USD used to surge dramatically when bombings started. It no longer does."
In fact, while gold and silver recorded 'God's candles' on Monday, the U.S. dollar index dropped sharply. As of this writing, it reached a level of 98.53. This divergence suggests growing skepticism about the dollar's role as a geopolitical safe haven.
The price action itself is historic. Economist and long-time advocate of precious metals Peter Schiff noted that gold has surpassed $4,560 for the first time in history, moving closer to $5,000 than to $4,000.
Meanwhile, silver has risen above $84, recording one of the strongest relative gains in decades. The simultaneous breakout of both metals is unusual and typically occurs during serious monetary or systemic stress.
Analysts believe the silver move is not driven solely by speculation. Co-founder and COO of Synnax, Dario, pointed out that silver has entered contango — a situation where futures prices are higher than spot prices. This may signal large corporate and industrial buyers entering the market.
According to Dario, such behavior suggests companies are hedging against supply shortages and rising future costs. It indicates demand from the real economy, not short-term trading excess.
Why the breakout of gold and silver looks like a delayed price correction
This surge has also reignited long-standing debates about suppressed prices in the precious metals markets. Kip Herriage argues that gold and silver were artificially restrained for years, pointing to JP Morgan's penalty in 2020 as a turning point.
After this event, according to Herriage, prices hit bottom and genuine value discovery began. From this perspective, current levels are not a bubble, but a delayed correction in valuation:
"The truth is, gold and silver should have cost what they are today, at least 10 years ago."
Beyond market structure, Herriage highlights the convergence of political and monetary factors. He predicts that a basket of gold, silver, and Bitcoin could partially hedge future U.S. long-term Treasury bonds. Such a shift would fundamentally alter the dynamics of government debt and permanently increase demand for scarce assets.
Although speculative, this idea reflects a broader search for credibility as debt levels rise. Meanwhile, trust in fiat currencies is declining.
Experienced investors agree this is just the beginning. Robert Kiyosaki forecasted silver above $80 by the end of 2026 and announced he would be buying it all the way up to $100. He also warned about the risks of excessive financial leverage.
According to the words of a well-known author, this is not a short-term move, but a generational shift in the approach to pricing trust, scarcity, and monetary risk in markets.
In summary, the breakout of gold and silver along with the weak reaction of the dollar suggest that markets are quietly entering a new regime where the old rules of safe havens no longer apply.
To access the latest cryptocurrency market analysis from BeInCrypto, click here.
