Gold Prices Soar to Record High Amid Global Economic Uncertainty

Gold has surged to an all-time high, with spot prices reaching $3,508.50 per ounce on Tuesday, as investors flock to the precious metal in search of stability during global economic turbulence.

The price of gold has climbed nearly one-third since the start of the year, driven by trade tensions, political risks, and expectations of lower U.S. interest rates. Traditionally considered a safe-haven asset, gold’s rally accelerated earlier this year after U.S. President Donald Trump imposed sweeping tariffs that rattled global trade.

Analysts say concerns over the independence of the U.S. Federal Reserve have also bolstered demand. Trump has repeatedly criticized Fed Chair Jerome Powell and recently attempted to dismiss one of its governors, fueling fears of political interference. Derren Nathan of Hargreaves Lansdown noted that these actions are “driving renewed interest in safe haven assets including gold.”

European Central Bank President Christine Lagarde warned on Monday that undermining the Fed’s independence would pose a “very serious danger” to global economic stability, potentially triggering ripple effects across markets worldwide.

Adrian Ash, director of research at BullionVault, linked the price surge directly to Trump’s policies: “It was really the U.S. election last year that lit the fire under it.”

Unlike previous surges, where high prices discouraged buyers in major jewellery markets such as China and India, this rally has seen continued demand. Consumers in these countries are turning to investment-grade products like bars and coins, rather than reducing purchases.

Suki Cooper, a precious metals analyst at Standard Chartered, added that geopolitical uncertainty—including Russia’s invasion of Ukraine—combined with inflationary pressures and supply chain disruptions, has further lifted gold. A weaker U.S. dollar earlier this year also made gold more appealing to investors.

With multiple global pressures converging, analysts suggest gold’s momentum could continue as investors seek safety in uncertain times.