Investors have turned to gold as a safe haven asset after US President Donald Trump’s harsh attacks on his tariff policies and the Federal Reserve. As a result, the price of gold reached $ 3,500 per ounce for the first time on Tuesday.
The price of gold reached a high of $ 3,500.10 during the day and then fell slightly to $ 3,467.87. Gold prices have been continuously setting records for the past few weeks. The reason for this is said to be investors seeking safe havens due to the weak dollar and the fear of a major collapse in the stock market.
As a result of the tariffs imposed by the Trump administration, a trade war has started between the United States and the world’s second largest economy, China. Gold prices have increased by more than 30 percent since the beginning of this year.
Rania Gulley, senior market analyst at trading firm XS.com, said, “This rise is a reflection of fears of a possible recession in the US economy and political tensions. Especially when President Trump continues to attack Federal Reserve Chairman Jerome Powell.
He added, “Such political pressure and questions about the Fed’s independence are forcing investors to choose gold as a safe haven in uncertain times.”
On Monday, President Trump called Fed Chair Powell a “loser” on social media because he did not cut interest rates. Trump even threatened to fire him last week, which has now led to speculation about whether he could actually do so.
Source: AFP