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The price of gold has surged to an all-time high, reflecting heightened investor demand for safe-haven assets amid mounting global economic and geopolitical turbulence.
On Tuesday, the spot gold price climbed to $3,508.50 per ounce, extending a rally that has already seen the precious metal rise by nearly a third in 2025 alone. Analysts attribute the record-breaking surge to a mix of trade tensions, political risks, and central bank policies that have unsettled global markets.
Much of the momentum, analysts say, stems from policies and actions by US President Donald Trump. His sweeping tariffs earlier this year disrupted global trade flows, driving investors to shield their portfolios with safer assets like gold.
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“Really, the US election last year is what put a fire under it,” explained Adrian Ash, director of research at BullionVault. “And since then, Trump’s actions on geopolitics and global trade have only fuelled the rally.”
Trump’s repeated confrontations with the US Federal Reserve have also rattled markets. His efforts to undermine the Fed’s independence—including reported attempts to oust one of its governors, Lisa Cook—have prompted fears of political interference in monetary policy.
“This attempt to weaken the Fed’s independence is driving renewed interest in safe-haven assets, including gold,” said Derren Nathan of Hargreaves Lansdown.
The concerns have not gone unnoticed internationally. European Central Bank President Christine Lagarde cautioned that any move to erode the Federal Reserve’s autonomy would pose a “very serious danger” to the global economy.
“If the Fed were to bow to political pressure, it would have a very worrying impact on US and global economic stability,” she said.
While past spikes in gold prices often triggered a cooling effect from major jewellery markets like China and India, this time demand has remained resilient. Instead of retreating, buyers in these countries are turning towards investment gold products such as coins and bars, adding fresh momentum to the surge.
“The usual slowdown from jewellery demand in Asia hasn’t materialised—if anything, it has morphed into investment demand,” noted Mr Ash.
Gold’s strength also reflects a broader climate of uncertainty, said Suki Cooper, a precious metals analyst at Standard Chartered.
“Russia’s invasion of Ukraine, shifting trade policies impacting inflation, and persistent supply chain disruptions have all added to the safe-haven appeal of gold,” she said.
Adding to the rally, a weaker US dollar earlier in the year gave investors even more incentive to flock to gold.
With the Federal Reserve expected to cut key interest rates in the coming months, analysts predict gold could remain on its upward trajectory, as lower borrowing costs make the non-yielding asset more attractive.
For now, gold’s historic rally underscores investors’ search for safety at a time when political turbulence and economic uncertainties show no signs of abating.
Source: BBC
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