Gold prices have surged to a record high of $3,500.05 per ounce, driven by escalating political tensions and economic uncertainties. President Donald Trump’s intensified criticism of Federal Reserve Chair Jerome Powell has raised concerns about the Fed’s independence, leading investors to seek safe-haven assets like gold.
The U.S. dollar has fallen to a three-year low, further fueling demand for gold. Additionally, a decline in manufacturing business confidence, as reported by the Federal Reserve Bank of Philadelphia, has contributed to the shift from riskier assets to gold.
Gold has become the top-performing commodity this year, with prices up over 30%. Exchange-traded fund holdings in gold have reached their highest levels since September 2023, reflecting robust investor interest.
