Gold prices soared to a record high of $3,500 per ounce on Tuesday, as global investors sought refuge from the growing uncertainties surrounding U.S. President Donald Trump’s trade policies and his escalating criticism of the Federal Reserve. The surge in gold prices comes amid heightened concerns about the impact of Trump’s tariffs and his public attacks on Federal Reserve Chairman Jerome Powell.
Gold, traditionally seen as a safe haven in times of market volatility, has reached a series of all-time highs as investors move away from the U.S. dollar and other assets, seeking security in the precious metal. On a particularly rough day for Wall Street, investors pulled back from stocks, sold U.S. Treasury bonds, and reduced their exposure to the dollar, causing its value to fall against most major currencies.
Gold’s Surge: Safe Haven Amid Uncertainty
Since the beginning of the year, gold has surged more than 30%, with its latest peak marking another milestone in its recent rally. Analysts at RBC Capital Markets noted that gold’s safe-haven status continues to shine, especially with growing doubts surrounding the independence of the Federal Reserve. “Gold continues to benefit as a safe-haven, and one not tied to the U.S. dollar,” the analysts said.
The price of gold began to rise significantly in early April when concerns about Trump’s tariffs led investors to offload Treasury bonds. On Tuesday, the spot price briefly crossed the $3,500 mark before retreating slightly.
Market Movements: A Broader View
Elsewhere in the markets, S&P 500 futures pointed to a higher opening for New York trading, while European and Asian markets showed broad declines. The U.S. dollar, which had already faced a slump against a range of currencies on Monday, continued its turbulent performance, losing ground to the yen but recovering against the euro.
The yield on 10-year U.S. Treasury bonds also rose slightly to 4.42%, indicating some stabilization in the bond market despite ongoing concerns.
In summary, the rise in gold prices underscores growing investor unease over political and economic uncertainties in the U.S., with the precious metal continuing to serve as a preferred safe-haven investment in times of turmoil.
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