Gold prices surged to an unprecedented high on Tuesday, touching $3,500 an ounce for the first time in history, as escalating economic concerns drove investors toward the traditional safe haven asset.
The precious metal briefly peaked at $3,500.10 an ounce before easing back to $3,467.87, maintaining its strong upward trend.
This milestone comes amid rising market volatility, a weakening US dollar, and continued investor anxiety over the global economic outlook. A string of record highs in recent weeks has positioned gold as a key refuge amid stock market turbulence and international financial uncertainty.
The surge follows US President Donald Trump’s intensifying trade spat with China, the world’s second-largest economy.
His administration’s tariffs have fueled fears of a prolonged economic conflict, further boosting gold’s appeal. Since the beginning of the year, the metal has gained over 30 percent.
Rania Gule, senior market analyst at trading platform XS.com, remarked: “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 toward gold as a store of value in uncertain times,” she added.
On Monday, President Trump took to social media to criticise Powell, labelling him a “major loser” for refusing to slash interest rates.
The post came shortly after Trump’s earlier threat to dismiss the Fed Chair, a move that has unsettled analysts and further complicated the monetary policy landscape.
