Gold prices soared to an all-time high on Tuesday, climbing above $3,500 per ounce as investors flocked to safe-haven assets in response to mounting global economic uncertainty.
The precious metal touched $3,501.59 an ounce during early Asian trading, surpassing its previous peak of $3,500.10 set in April.
The rally comes against the backdrop of a weaker US dollar and growing speculation that the Federal Reserve may soon cut interest rates. However, concerns over persistent inflation and the central bank’s policy independence have unsettled markets.
On Friday, Wall Street retreated from record highs after a key US inflation gauge accelerated, narrowing the Fed’s room for manoeuvre. Political pressure has further complicated the outlook, with former President Donald Trump recently threatening to dismiss Fed Governor Lisa Cook over allegations of mortgage fraud.
Adding to market unease, a US appeals court ruled that many of Trump’s tariffs—which have reshaped global trade—were unlawful. Nevertheless, the court allowed the duties to remain in place temporarily, leaving investors bracing for a potential Supreme Court battle.
With uncertainty clouding both economic and political horizons, gold’s historic rise underscores its enduring appeal as a hedge against volatility.
