Gold prices have surged to a new record high as investors continue to flock to safe-haven assets amid rising global economic uncertainty.
The spot price of gold reached $3,508.50 per ounce early Tuesday, marking a significant milestone in a year that has already seen the precious metal gain nearly 30%, according to the BBC.
The surge is largely attributed to ongoing concerns about global trade stability and geopolitical tensions. Investor demand for gold—often seen as a secure store of value during times of crisis—has remained strong throughout the year.
Market analysts point to recent developments in U.S. economic policy as a key driver. Earlier this year, U.S. President Donald Trump’s announcement of sweeping tariffs sent shockwaves through international markets, prompting a shift toward gold and other low-risk assets.
Adding to the momentum is speculation that the U.S. Federal Reserve may soon cut interest rates, a move that typically makes non-yielding assets like gold more attractive to investors.
Adrian Ash, director of research at BullionVault, told the BBC’s Today programme that President Trump’s actions have been a significant factor in the gold rally.
“It’s really down to Trump—what he’s done to geopolitics and what he’s done to global trade,” Ash said. “It was really the U.S. election last year that put a fire under it.”
With investor confidence in traditional markets wavering, many are turning to gold as a hedge against volatility, further fueling its meteoric rise.
