AhlulBayt News Agency (ABNA): The unprecedented surge in global gold and silver prices has sounded a fresh alarm for the US economy and the future of the international financial system. Analysts say this historic jump is a clear sign of a deepening crisis of confidence in the dollar and Washington’s fiscal and monetary policies, one that could culminate in a broad financial crisis in the United States.
According to the latest data, the price of gold has surged past the $5,100 mark to reach a historic record of $5,608 per ounce. This exceptional rise, which began more than a year ago as investors shifted toward safe-haven assets, has now accelerated amid intensifying political and economic uncertainty in the United States. Threats of new tariffs, the contents of the so-called “big and beautiful bill,” the risk of a federal government shutdown over a $1.3 trillion budget, and critical Federal Reserve decisions on interest rates are among the factors fueling the rally in precious metals.
Market analysts believe that the rise in gold and silver prices is not merely a short-term fluctuation but rather reflects a profound erosion of confidence in the US economy. While some official indicators continue to present a picture of stability, the dollar’s decline against major currencies such as the Swiss franc and the Chinese yuan, alongside the fall of the consumer confidence index to its lowest level in 12 years, indicates that both markets and American society are viewing the future with deep skepticism.
At the same time, US national debt, which has surpassed $38 trillion, along with mounting budget deficits, is cited as the main driver behind the dollar’s weakening position. Experts stress that the core problem is not the possibility of a government shutdown, but the persistence of expansionary fiscal policies and chronic budgetary indiscipline, which have steadily undermined trust in the US national currency.
The latest surge in precious metal prices has revived comparisons with the period preceding the 2008 financial crisis. Just as cracks in the subprime mortgage market then foreshadowed a systemic collapse, today’s rally in gold and silver is being interpreted as a warning sign of a looming dollar-centered crisis. This time, however, analysts argue that the coming shock is likely to be more distinctly American in nature rather than global, and could even surpass the severity of the 2008 crisis.
Within this context, the pace of global “de-dollarization” has accelerated. Central banks across many countries have stepped up gold purchases while simultaneously reducing their holdings of dollar assets and US Treasury bonds. This strategic shift reflects governments’ efforts to cut dependence on the dollar and build more reliable backing for their national currencies.
Experts contend that the US economy has evolved less into an independent engine of production and more into a consumption-driven, credit-based system heavily reliant on the dollar’s status as the world’s primary reserve currency. This privileged role has enabled the United States to consume more than it produces and to offset domestic savings shortfalls by attracting foreign capital. Now, however, as countries diversify their foreign exchange reserves and move away from the dollar, the rules of this system are changing—potentially undermining its very foundations.
Alongside these developments, the US stock market is also facing growing uncertainty. Although indices such as the S&P 500 may reach new nominal highs, their real value against stronger currencies and tangible assets is widely seen as being on a downward trajectory. By contrast, shares of gold and silver mining companies have recorded remarkable gains, with some rising by more than 200 percent within just a few months. Analysts say that if the dollar’s decline continues, the junior mining sector could witness even sharper surges.
Overall, the historic rise in gold and silver prices is viewed not as an isolated event, but as a serious signal of structural failures in US fiscal and monetary policy. Many observers warn that the coming “economic storm” could begin as early as this year or next, reshaping the global economic order and forcing the United States to confront the heavy consequences of its past decisions.
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