Tue, 02 Sep 2025

Tue, 02 Sep 2025 Gold price hits record high as investors seek safety

Experts say uncertainty resulting from US policy is making investors seek safer investments such as gold.
Gold price hits record high at $3,508.50 per ounce due to strong demand amid global economic uncertainty. The precious metal's price has risen by nearly a third this year as investors view it as a safer asset during times of economic uncertainty. Analysts attribute the surge in gold prices to US President Donald Trump's policies and actions that have upset global trade and created uncertainty about the independence of the Federal Reserve. The Fed's chair, Jerome Powell, and one of its governors, Lisa Cook, have been targets of Trump's criticism and attacks on the institution's independence. A cut in interest rates by the US central bank is also expected to make gold an even more attractive prospect for investors. Demand for gold remains strong despite high prices, with jewellery buyers in China and India turning towards buying investment gold products instead. The price increase has been fueled by a combination of factors including Russia's invasion of Ukraine, changing trade policies, and the impact on inflation and supply chains. USD weakness earlier this year has also added to the support for gold prices.
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