The price of gold jumped to a fresh record high of $3,500.05 per troy ounce on Tuesday, owing to the global economic uncertainty caused by President Donald Trump’s tariffs and his intention to oust Federal Reserve Chair Jerome Powell.
Weeks of market turmoil sparked by Trump’s tariffs have been further fueled by his threats to fire Powell after repeated public attacks on him, sending stocks into deeper volatility over recent trading sessions. Trump has lambasted the Fed chief for not lowering interest rates.
Gold, which is considered a safer financial bet amid economic uncertainty, has risen over 31% so far this year, making it one of the biggest winners as Trump advances his global tariff agenda.
Gold on The Rise, Bonds Declining
The rise in the value of Gold is “driven by rising demand for safe-haven assets amid declining confidence in the US dollar and escalating geopolitical and economic risk,” according to Rania Gule, senior market analyst at XS.com.
On the other hand, investors have been dumping bonds due to heavy selling pressure with the yield on 10-year Treasuries, a benchmark for various debt, increasing.
The rise in gold prices follows a widespread sell-off in the US, where all three major indexes — the Dow, the S&P 500 and the tech-heavy Nasdaq Composite — slumped on Monday.
