Gold surged to a record $3,500 per ounce on Tuesday before easing slightly, driven by investor concerns over perceived political interference in the Federal Reserve and a growing exodus from U.S. assets.
The metal, widely considered a safe haven, gained as much as 2.2% in early trading before retreating as traders moved to secure profits.
The rally unfolded amid broader market turmoil, with the Japanese yen and Swiss franc also advancing as traditional safe havens.
Analysts pointed to rising pressure from former President Donald Trump, who renewed calls for immediate rate cuts, a move seen by many as a challenge to the Fed’s independence.
The U.S. dollar fell to its lowest level since 2023, reflecting investor unease.
“Gold’s rapid ascent this year tells me that markets have less confidence in the U.S. than ever,” said Lee Liang Le, analyst at Kallanish Index Services.
“The ‘Trump Trade’ narrative has evolved into a ‘sell America’ narrative.”
In 2025, gold has already climbed more than 30%, fueled by geopolitical tensions, ongoing trade disputes, and widespread rebalancing away from dollar-denominated assets.
The surge has been amplified by strong flows into bullion-backed ETFs and substantial central bank purchases.
“There is a desire to diversify out of dollar assets into a broader range of safe havens,” said Kamakshya Trivedi, head of global FX, rates, and emerging-market strategy at Goldman Sachs Group Inc., speaking with Bloomberg TV.
Goldman Sachs forecasts that gold could hit $4,000 per ounce by mid-2026 if global financial uncertainty persists.
Analysts at Jefferies have gone further, calling gold “the only true safe-haven asset left,” amid growing doubts about U.S. Treasuries and other traditional investments.
Despite the bullish sentiment, some technical indicators suggest a short-term cooling may be imminent.
Gold’s 14-day relative-strength index has risen above 78—typically a signal that a pullback could be near.
As of 10:37 a.m. in Nigeria, gold for immediate delivery was trading at $3,454.88 per ounce, up 0.9% from the previous day but slightly down from its peak.
Meanwhile, the Bloomberg Dollar Index held steady, silver slipped, and both palladium and platinum gained, reflecting broader portfolio adjustments.
Gold’s continued ascent underscores its role as a hedge against macroeconomic instability and highlights mounting skepticism toward the U.S. financial system as investors seek stability in increasingly volatile markets.
