Gold hits record $3,500 amid US-China trade tensions

Gold prices soared to a historic high of $3,500 per ounce on Tuesday, driven by growing investor fears over the US economy, President Donald Trump’s tariffs, and his recent criticism of the Federal Reserve.

The precious metal briefly touched $3,500.10 an ounce before settling at $3,467.87. This marks the latest in a series of record highs, as traders continue to rush towards gold as a safe investment option, especially with the US dollar weakening and global stock markets facing losses.

President Trump’s trade conflict with China, the world’s second largest economy, has intensified global economic concerns. Since the beginning of the year, gold has gained over 30 percent.

Rania Gule, a senior market analyst at trading firm XS.com, explained that the rise in gold prices is linked to fears of a recession in the US and growing political tension. She stated, “These attacks have raised concerns about the independence of monetary policy, pushing investors toward gold as a store of value in uncertain times.”

On Monday, Trump referred to Federal Reserve Chair Jerome Powell as a “major loser” on social media, criticizing him for not lowering interest rates. This follows Trump’s recent threats to fire Powell, further fueling uncertainty among investors.

– AFP