Gold’s price has reached a record high, fueled by anxieties surrounding economic uncertainty and political developments. Investors are showing increased risk aversion due to concerns over trade tensions, particularly between the US and China, and the potential politicization of US monetary policy.
- Gold surged past $3,480 per ounce, setting a new record.
- Risk aversion due to growing economic uncertainty is driving the price increase.
- President Trump criticized Fed Chair Powell, raising concerns about the Fed’s independence.
- Ongoing worries over global trade tensions between the US and China persist.
- Trump’s investigation into critical mineral tariffs could strain relations with key suppliers like China.
- Gold has gained more than 30% this year.
The confluence of factors outlined suggests a flight to safety among investors. Uncertainty regarding trade relations and the stability of monetary policy are boosting the appeal of gold as a store of value. The potential for further escalations in trade disputes and concerns about the independence of central banks could sustain this upward trajectory for the asset.