For the first time in history, the price of gold has surpassed the milestone of $3,500 per ounce.
According to a report published by Reuters on Tuesday (April 22), the price of gold in the spot market rose by 0.8%, reaching $3,452.52 per ounce. Earlier in the session, it had hit a record high of $3,500.05 per ounce.
In the futures market, gold prices climbed even higher, rising 1.2% to $3,464.50 per ounce.
This historic surge comes amid growing economic uncertainty. US President Donald Trump has urged for an immediate interest rate cut, warning that the US could face a recession if action isn't taken soon. However, Federal Reserve Chairman Jerome Powell has remained steadfast in his decision to keep rates unchanged. This policy standoff has created uncertainty among investors, many of whom are now turning to gold as a safer investment.
Tim Waterer, Chief Market Analyst at KCM Trade, commented, "Concerns over tariffs and the ongoing conflict between Trump and Powell are prompting investors to shy away from US assets. As the dollar weakens, gold is benefiting and surging to record highs."
While analysts caution that a short-term correction in gold prices is possible, they believe sustained demand is likely due to the broader economic volatility.
Alexander Zumpfe, a precious metals trader at Germany's Heraeus Metals, noted, "The sharp rise in gold prices is largely driven by President Trump's public pressure on Fed Chairman Powell. With political tensions and uncertainty surrounding monetary policy, demand for gold is expected to remain strong."
