Gold has climbed to a record high as global uncertainty drives demand for safe assets. On Tuesday morning, the spot price reached $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, prices jumped after President Donald Trump imposed sweeping tariffs. The measures disrupted global trade and pushed investors toward safer assets. 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 major role in the surge. He highlighted the impact of shifting geopolitics and trade conflicts. Ash also noted that last year’s US election added momentum to the rally.
Federal Reserve independence under pressure
The rise in gold also reflects concerns over 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 undermined 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 with the Fed would pose a serious threat to global stability.
Lagarde stressed that such moves could destabilise the US and ripple through international markets.
Asia keeps demand strong
Ash noted that gold rallies often slow when jewellery buyers in China and India reduce purchases. Both countries are major markets for gold jewellery. Normally, higher prices discourage buying.
This time, demand remains firm. 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-breaking levels.
