The price of gold has reached an all-time high, driven by heightened demand for safe-haven assets amid concerns over an economic slowdown. Gold prices maintained their unprecedented surge on Tuesday, supported by apprehensions regarding U.S. President Donald Trump’s remarks about the Federal Reserve chair and worries that escalating trade tensions may hinder economic growth, thereby increasing the appeal of safe-haven assets.
Spot gold experienced a modest increase of 0.1%, reaching $3,429.03 per ounce, following a peak of $3,443.79 per ounce earlier in the trading session. Gold futures in the United States increased by 0.4%, reaching a value of $3,439.70. Gold, recognized as a safeguard against economic volatility and characterized by its high liquidity, has reached several record peaks, appreciating over 30% year-to-date. Last Wednesday, bullion exceeded $3,300, and its robust momentum propelled prices upward by an additional $100 within a matter of days. Spot silver increased by 0.1%, reaching $32.72 per ounce, platinum saw a rise of 0.4% to $965.20, and palladium experienced a 1.3% uptick to $939.60.
On Monday, Trump indicated that the U.S. economy might experience a deceleration unless there is an immediate reduction in interest rates. He reiterated his critique of U.S. Federal Reserve Chair Jerome Powell, who maintains that interest rates ought to stay steady until there is definitive evidence that Trump’s tariff strategies will not result in a sustained increase in inflation. Market participants are keenly awaiting upcoming addresses from various Federal Reserve officials later this week, seeking clarity on prospective monetary policy in light of apprehensions regarding the central bank’s autonomy. China has leveled accusations against Washington for the misuse of tariffs and has cautioned nations against entering into more extensive economic agreements with the U.S. that could be detrimental to its interests, intensifying its rhetoric amid an escalating trade conflict between the two largest economies globally.