-Peace News Desk
The price of gold has reached a record high as more people buy it during global economic uncertainty. On Tuesday, spot gold rose to $3,508.50 per ounce, almost one-third higher than earlier this year.
Gold is often seen as a safe investment in times of crisis. Its price started rising after US President Donald Trump announced new tariffs that disrupted global trade. Analysts also believe the expectation that the US central bank will cut interest rates has made gold more attractive.
Experts say Trump’s actions have had a big influence. Adrian Ash from BullionVault explained that Trump’s policies and the last US election gave a big push to gold prices. Others point out that Trump’s attacks on the Federal Reserve, including attempts to remove officials, have added to investor worries. Derren Nathan from Hargreaves Lansdown said these actions are driving people towards safe-haven assets like gold.
European Central Bank head Christine Lagarde warned that if Trump undermines the Fed’s independence, it could harm the global economy. A weaker Fed could lead to serious instability in the US and worldwide.
In the past, gold demand often slowed when prices rose. But now, strong buying continues in China and India. Instead of only buying jewellery, people there are investing in gold bars and coins.
Other global events are also pushing gold higher. Russia’s invasion of Ukraine has created more political uncertainty. Inflation, supply chain changes, and a weaker US dollar earlier this year have also boosted demand for gold.
Analysts believe this combination of politics, economic worries, and strong demand is keeping gold on its upward path.
-Peace News Desk