Gold has reached an all-time peak as global uncertainty drives investors toward safer assets. On Tuesday morning, the spot price rose to $3,508.50 per ounce. The surge extends a rally that has lifted the metal by nearly a third this year.
Trade tensions trigger surge
Gold traditionally strengthens during unstable times. Earlier this year, its value increased after President Donald Trump imposed sweeping tariffs. Those measures disrupted global trade and pushed investors to safer ground. Analysts also expect the US central bank to cut interest rates, which makes gold even more attractive.
Adrian Ash, research director at BullionVault, tied the surge directly to Trump’s actions. He said the rally reflects the impact of trade disputes and geopolitics. Ash also pointed out that last year’s US election added fuel to the upward trend.
Fed independence sparks concern
The price surge also reflects growing concerns over the Federal Reserve’s independence. Trump has repeatedly attacked Fed chair Jerome Powell. He even tried to remove one of the bank’s governors, Lisa Cook.
Derren Nathan from Hargreaves Lansdown said Trump’s behaviour undermined confidence in the Fed. He explained that investors turned to safe haven assets such as gold. On Monday, European Central Bank president Christine Lagarde issued a warning. She said interference with the Fed would pose a serious threat to the global economy.
Lagarde stressed that political influence could destabilise the US and spread through world markets.
Asian markets sustain demand
Ash observed that gold rallies often slow when jewellery demand in China and India declines. Both countries represent major markets for gold jewellery. Normally, higher prices reduce buying.
This time, demand remains resilient. Buyers in China and India are moving from jewellery to investment products like bars and coins. Their continued interest supports gold’s rise, even as prices hit record levels.
