The price of gold has hit a record high as demand for the precious metal remains strong amid global economic uncertainty.
The spot gold price hit $3,508.50 per ounce early on Tuesday, continuing its upwards trend which has seen it rise by nearly a third this year.
The precious metal is viewed as a safer asset for investors during times of economic uncertainty, and its price rose earlier this year after US President Donald Trump announced wide-ranging tariffs which have upset global trade.
Analysts say the price has also been lifted by expectations that the US central bank will cut its key interest rate, making gold an even more attractive prospect for investors.
Adrian Ash, director of research at BullionVault, told the BBC's Today programme that the rise in gold prices over the past few months is really down to Trump and 'what he's done to geopolitics [and] what he's done to global trade.' He added, 'It was really the US election last year that really put a fire under it.'
Concerns over the Federal Reserve's independence are also fueling the surge. Trump's attempts to undermine the institution, including repeated attacks on Fed chair Jerome Powell and an attempt to dismiss one of its governors, Lisa Cook, are leading investors to favor gold as a safe haven. Derren Nathan from Hargreaves Lansdown highlighted Trump's actions as drivers of renewed interest in safe haven assets.
Christine Lagarde, head of the European Central Bank, recently warned that undermining the Fed's independence would have a 'very serious danger' for the global economy. She cautioned that political influences could destabilize economic policies crucial for stability.
Typically, surges in gold prices dampen demand from major markets like China and India; however, this trend appears different as investors there are shifting from traditional gold jewelry purchases to investment gold products, such as bars and coins, indicating sustained demand.
