The price of gold surged past $3,500 per ounce for the first time in history on Tuesday, driven by the ongoing trade war and tensions between Donald Trump and the Federal Reserve’s chairman, which have impacted Wall Street.
Gold was trading at $3,467.87 per ounce at 09:30 Belgian time, following an earlier record high of $3,500.10. The yellow metal, considered the ultimate safe haven asset, has increased by more than 30% since the beginning of the year.
US President Donald Trump recently threatened to dismiss the Fed chairman, who has refused to lower interest rates as demanded by the US President. However, Trump lacks the authority to directly fire Federal Reserve leaders. To remove Jerome Powell, he would need to initiate a lengthy process and prove misconduct.
The escalating trade war between the United States and China, marked by reciprocal tariffs, is pushing investors towards safe investments like gold.
"The rapid increase in gold prices this year reflects the markets’ declining confidence in the United States," explained Lee Liang Le, a market analyst at Kallanish Index Services in Singapore.
These uncertainties have also weakened the US dollar, which has dropped to its lowest level against the euro in three years.
