Gold prices soared to an unprecedented high on Tuesday, reaching $3,500.10 per ounce before slightly retreating to $3,467.87, as fears of a looming recession in the United States and escalating political tensions gripped global markets.
The historic spike comes amid renewed pressure from U.S. President Donald Trump on Federal Reserve Chair Jerome Powell.
In a heated social media post on Monday, Trump labeled Powell a “major loser” for refusing to cut interest rates, fuelling speculation that the President may be planning to remove the Fed chief.
Rania Gule, a senior market analyst at trading group XS.com, attributed the surge in gold prices to rising economic uncertainty.
“The rally reflects ongoing recession fears in the US economy and heightened political tensions, especially as President Donald Trump continues to attack Federal Reserve Chair Jerome Powell.
These attacks have raised concerns about the independence of monetary policy, pushing investors towards gold as a store of value in uncertain times,” Gule said.
Gold has gained over 30 percent since the beginning of the year, as investors flee to safe-haven assets amid volatile markets and growing geopolitical risks.
Tensions between the U.S. and China have also deepened, with Trump’s tariff policies igniting a prolonged trade war between the world’s two largest economies.
In a related development, the U.S. dollar fell sharply on Tuesday, further reflecting the market’s jittery response to the current economic and political climate.
