Gold prices soared to an unprecedented high on Tuesday, breaching the $3,500-per-ounce mark for the first time in history, as geopolitical and economic uncertainties fueled a flight to safe haven assets.
The precious metal hit an all-time peak of $3,500.10 per ounce in early trading before easing to $3,467.87, reflecting heightened investor anxiety following fresh tariff threats and renewed criticism of the Federal Reserve by US President Donald Trump.
Analysts say the surge was largely driven by market fears of escalating trade tensions and concerns over central bank independence, both of which have rattled investor confidence.
Trump’s latest round of tariff announcements, combined with his verbal assault on the Fed’s monetary policy decisions, have amplified fears of economic instability. In response, investors turned to gold, traditionally regarded as a hedge against inflation and global uncertainty.
The rally underscores the growing demand for stable assets amid volatility in equity and currency markets.
“Gold is benefiting from a perfect storm of geopolitical risk, trade uncertainty, and declining confidence in the central bank’s autonomy,” said a commodities analyst with a leading investment firm.
