In a landmark moment for global financial markets, gold prices surged past the historic $3,500 per ounce mark on Tuesday, marking an all-time high for the precious metal.
Investors flocked to the traditional safe-haven asset as political and economic tensions intensified, with the sharp rally reflecting growing uncertainty about the direction of U.S. economic policy.
Spot gold climbed 2.2% to $3,493.41 per ounce as of 0620 GMT, after briefly touching a historic peak of $3,500.05 earlier in the trading session, according to Reuters. The surge was fueled by concerns over U.S. President Donald Trump’s renewed criticism of Federal Reserve Chair Jerome Powell and his call for an immediate interest rate cut.
Trump warned that the U.S. economy could face a downturn unless rates are lowered, directly blaming Powell’s decision to maintain current levels. The political pressure on the Fed, combined with global trade tensions, has significantly dampened investor confidence, pushing them toward gold as a more stable store of value.
Asian stock markets mirrored the unease, struggling to recover after a rapid sell-off in U.S. equities that sent shockwaves through Wall Street and weakened the dollar. Adding to the volatility, China accused the United States of misusing tariffs and cautioned other nations against entering economic agreements with Washington under current terms.
The historic surge in gold represents more than just a price milestone. It also underscores the market’s growing skepticism about central bank independence and policy direction. The metal has now gained almost 33% since the beginning of the year, further cementing its role as a critical hedge in times of instability.
However, technical indicators suggest caution ahead. Gold’s relative strength index (RSI) has reached 79, a level that typically signals an overbought condition and the potential for a short-term pullback.
Still, investors remain focused on upcoming speeches from several Federal Reserve officials this week, hoping for signals that might clarify the central bank’s stance. Whether this historic rally continues or corrects, gold has once again proven its timeless appeal in times of financial turbulence.