SINGAPORE (Realist English). Gold prices hit a fresh all-time high on Tuesday, surpassing April’s record as investors flocked to safe-haven assets amid a weakening dollar, renewed pressure on the U.S. Federal Reserve, and expectations of an imminent rate cut.
The spot price of gold rose 0.9% to $3,508.70 per troy ounce in early Asian trading before easing slightly to $3,497. Analysts said demand has been fuelled by fears over inflation, political interference in U.S. monetary policy, and broader economic uncertainty.
The rally followed President Donald Trump’s announcement of sweeping “liberation day” tariffs, which rattled markets and intensified speculation that the Fed would move to cut rates. Concerns deepened after Trump publicly pressured Fed chair Jay Powell and initiated steps to dismiss governor Lisa Cook, raising questions over the central bank’s independence.
According to Goldman Sachs, inflows into gold exchange-traded funds have become a key driver of prices. The bank projected spot prices could climb to $4,000 per ounce by mid-2026 if current trends persist.
Gold has nearly doubled in value since early 2023, supported in large part by central bank purchases. Last year, bullion overtook the euro to become the world’s second-largest reserve asset after the U.S. dollar, making up about 20% of global official reserves.
Major buyers included India, China, Turkey and Poland, according to the World Gold Council. Analysts say the sustained demand underscores gold’s role as both a hedge against inflation and a strategic store of value in a period of heightened geopolitical and economic volatility.
