The gold price rose to over $3,200 for the first time, with the precious metal gaining 1.7% on Friday and reaching a record price of around $3,233 per troy ounce (31.1 grams).
With these results, gold continues to reach record heights, having already broken the $3,100 milestone for the first time in late March.
The gold price has been on a steep rise for some time. This is partly due to the turmoil surrounding US President Donald Trump's erratic trade policies. That led to a sell-off in stocks, bonds and the dollar. Gold is seen as a safe investment in uncertain times in financial markets.
Gold has already increased in price by more than a fifth this year and is up about 6% in price this week. "Gold is the best place to be right now," said a Shanghai-based gold trader. "The unprecedented trade tension has reinforced distrust of the US dollar, increasing demand for other safe investments."
In addition to the uncertainty surrounding US trade policy, gold prices are being driven by central bank purchases and speculation of further interest rate cuts. Lower interest rates tend to favour gold. On top of that, the dollar is under considerable pressure due to declining confidence in the US economy.
Therefore, investors are exchanging their dollars for safer currencies such as the Japanese yen and the Swiss franc. The Swiss franc climbed to its highest level in five months and the yen to its strongest level in three weeks. The euro rose to its highest level since February 2022.
