Gold has reached a record peak as global uncertainty pushes investors toward safe assets. On Tuesday morning, the spot price rose to $3,508.50 per ounce. The rally has lifted the metal by nearly a third since the start of the year.
Trade tensions drive gold surge
Gold often strengthens when markets face instability. Earlier this year, its price jumped after President Donald Trump introduced sweeping tariffs. The measures disrupted global trade and increased demand for secure investments. Analysts also expect the US central bank to cut interest rates, boosting gold’s appeal further.
Adrian Ash, research director at BullionVault, said Trump’s policies played a key role in the surge. He highlighted the impact of geopolitics and shifting trade flows. Ash also noted that last year’s US election added momentum to the rally.
Federal Reserve under pressure
The rise in gold also reflects concerns about the Federal Reserve’s independence. Trump has repeatedly criticised Fed chair Jerome Powell. He even attempted to remove governor Lisa Cook.
Derren Nathan from Hargreaves Lansdown said Trump’s pressure weakened investor confidence. He explained this drove buyers toward safe haven assets like gold. On Monday, European Central Bank president Christine Lagarde issued a warning. She said political interference in the Fed would pose a serious threat to global stability.
Lagarde stressed that such moves could destabilise the US and ripple across international markets.
Asia sustains strong demand
Ash noted that gold rallies often cool when jewellery buyers in China and India reduce purchases. Both countries are major markets for gold jewellery. Normally, rising prices discourage buying.
This time, demand remains strong. Buyers in China and India are shifting from jewellery to investment products such as bars and coins. Their continued interest supports gold’s rise, even at record levels.
