Gold has surged to an all-time high as global uncertainty drives demand for secure assets. On Tuesday morning, the spot price climbed to $3,508.50 per ounce. The rally has lifted the metal by nearly a third since the start of the year.
Trade tensions push prices higher
Gold often gains value when markets face instability. Earlier this year, its price jumped after President Donald Trump introduced sweeping tariffs. The measures disrupted global trade and encouraged investors to seek stability. Analysts also expect the US central bank to lower interest rates, adding to gold’s appeal.
Adrian Ash, research director at BullionVault, said Trump’s actions were a key factor in the surge. He pointed to changes in geopolitics and global trade. Ash also highlighted that the US election last year added momentum to the rally.
Federal Reserve under scrutiny
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 trust in the Fed. He explained this drove investors toward safe havens like gold. On Monday, European Central Bank president Christine Lagarde warned of serious risks. She said political interference with the Fed would threaten global stability.
Lagarde stressed that such moves could destabilise the US and impact markets worldwide.
Asian demand keeps market strong
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, higher 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 sustains gold’s rise, even at record-breaking levels.
