Gold price hits record high amid economic uncertainty

The price of gold has reached an all-time high, rising to $3,508.50 per ounce in early morning trading, according to the BBC. This marks the highest recorded price for spot gold the rate at which the metal is traded for immediate delivery.

The surge comes amid heightened global economic uncertainty. Investors are increasingly viewing gold as a safe-haven asset due to ongoing geopolitical tensions and instability in global trade, particularly following widespread tariffs imposed by U.S. President Donald Trump.

Analysts also point to expectations that the U.S. Federal Reserve may soon lower interest rates, a move that typically increases gold’s appeal.

Adrian Ash, Research Director at BullionVault, said the sharp rise is largely driven by Trump’s trade policies.

“Last year’s U.S. election really ignited the rally in gold prices,” he added.

Market concerns have also been fueled by questions over the Federal Reserve’s independence. President Trump has publicly criticized Fed Chair Jerome Powell and recently attempted to remove Governor Lisa Cook.

Derren Nathan of Hargreaves Lansdown noted that such actions are pushing investors back toward safer assets.

“Efforts to undermine the Fed’s independence are increasing demand for gold,” he said.

European Central Bank President Christine Lagarde warned on Monday that weakening the Fed’s independence could pose a “serious threat” to the global economy.