Gold has climbed to its highest level ever as global uncertainty drives demand for secure 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 disputes drive surge
Gold typically rises when markets face instability. Earlier this year, its price jumped after President Donald Trump imposed sweeping tariffs. The measures disrupted global trade and encouraged investors to move toward safer assets. Analysts also expect the US central bank to cut interest rates, increasing gold’s appeal.
Adrian Ash, research director at BullionVault, said Trump’s policies were a key factor in the surge. He pointed to global trade tensions and shifting geopolitics. Ash also noted that last year’s US election added momentum to the rally.
Federal Reserve under pressure
Concerns over the Federal Reserve’s independence are also pushing gold higher. Trump has repeatedly criticised Fed chair Jerome Powell. He even attempted to remove governor Lisa Cook.
Derren Nathan from Hargreaves Lansdown said Trump’s actions weakened investor confidence. He explained this pushed buyers toward safe haven assets like gold. On Monday, European Central Bank president Christine Lagarde warned of serious risks. She said political interference in the Fed would threaten global stability.
Lagarde stressed that such moves could destabilise the US and ripple across international markets.
Strong demand continues in Asia
Ash noted that gold rallies often slow when jewellery buyers in China and India cut back. Both countries are major markets for gold jewellery. Normally, higher prices reduce purchases.
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 supports gold’s rise, even at record levels.
