Gold Hits All-Time High Amid Global Uncertainty and Trump’s Economic Policies

The price of gold has soared to a record high of $3,508.50 per ounce, as investors rush to the traditional safe-haven asset amid growing global instability and economic uncertainty.

The precious metal has surged by nearly 30% so far this year, driven by a mix of geopolitical tensions, volatile monetary policy, and concerns over central bank independence — many of which analysts directly link to recent actions by U.S. President Donald Trump.

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Tariffs and Turmoil Fuel Investor Flight to Gold

Gold’s meteoric rise began accelerating earlier this year following Trump’s announcement of sweeping tariffs, which have rattled global trade and stoked fears of a renewed US-China trade war.

“The US election really put a fire under it,” said Adrian Ash, director of research at BullionVault, in an interview with BBC’s Today programme. “It’s about what Trump has done to geopolitics [and] what he’s done to global trade.”

The market’s reaction highlights growing anxiety around Trump’s economic policies, particularly his aggressive trade stance and open clashes with the Federal Reserve.

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Federal Reserve Under Pressure

Investor concerns deepened further as Trump ramped up his attacks on Federal Reserve Chair Jerome Powell, and reportedly attempted to fire Fed Governor Lisa Cook — an unprecedented move that analysts warn could undermine the institution’s independence.

“It’s these attempts to undermine the independence of the Federal Reserve Bank that are driving renewed interest in safe haven assets, including gold,” said Derren Nathan of Hargreaves Lansdown.

Christine Lagarde, head of the European Central Bank, called the developments “a very serious danger” to global financial stability. She warned that if the Fed is forced to align with political interests, it could have “very worrying” consequences for both the U.S. and the broader global economy.

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Rate Cut Expectations Add Fuel to the Fire

Another major factor behind the gold rally is growing speculation that the Federal Reserve will cut interest rates — a move that typically weakens the U.S. dollar and boosts the appeal of gold, which doesn’t yield interest but holds value during inflationary or uncertain periods.

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Strong Demand from East and West

Traditionally, soaring gold prices have led to a pullback in demand from major jewellery-buying markets like China and India. But this time, the trend appears to be different.

“Rather than exiting the market, buyers in China and India are shifting to investment gold — bars and coins — rather than jewellery,” said Ash.

This sustained demand from both Eastern and Western markets is helping support prices at record levels.

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A Perfect Storm for Gold

Beyond Trump’s trade and monetary policies, other factors are also contributing to the surge in gold:

• Russia’s invasion of Ukraine continues to unsettle global markets.
• Supply chain disruptions tied to new trade policies have heightened inflation fears.
• Earlier in the year, weakness in the U.S. dollar made gold more attractive globally.

“Gold has found added support from USD weakness earlier in the year as the preferred safe haven,” said Suki Cooper, precious metals analyst at Standard Chartered.

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Outlook: Is This the Peak?

While some analysts warn that a correction could come if investor sentiment shifts or interest rates rise unexpectedly, the overall consensus is that gold’s rally reflects deep-seated unease about the global economic outlook.

For now, with geopolitical tensions running high, central bank independence under scrutiny, and market volatility showing no signs of slowing, gold remains king in the eyes of cautious investors.