The global price of gold reached a new record of $3500 per ounce in Wednesday morning trading, showing an unprecedented growth. This significant increase is a result of escalating tensions between Donald Trump, the President of the United States, and the country’s central bank (Federal Reserve). Trump recently announced considering the dismissal of Jerome Powell, the Federal Reserve Chairman, raising concerns about the central bank’s independence. Meanwhile, ongoing trade tensions between the United States and China, along with severe warnings from the Chinese Ministry of Commerce about U.S. trade actions, have created a sense of distrust in the markets. Additionally, the sharp decline in the value of the dollar against a basket of major currencies has increased the attractiveness of gold for investors and contributed to its further growth. The rising demand for gold as a safe asset is a sign of investors’ concerns about the future of the global economy and U.S. monetary policies.
