Gold prices soared to a historic high above $3,500 on Tuesday as investors flocked to the precious metal amid growing global economic concerns.
During early trading in Asia, gold reached $3,501.59 per ounce, surpassing its previous record of $3,500.10 set in April.
This surge in gold prices comes as market participants consider a weaker US dollar and the potential for interest rate cuts by the Federal Reserve.
On Friday, Wall Street retreated from record levels after a key US inflation report showed signs of acceleration, leaving the Federal Reserve with less flexibility while concerns over its autonomy continue to grow.
With Wall Street closed on Monday for Labor Day, the dollar showed mixed results against its major counterparts.
Last month, US President Donald Trump indicated he would remove Federal Reserve governor Lisa Cook if she did not resign, following his criticism of her in connection with claims of mortgage fraud.
The record-high gold price also follows a US appeals court decision declaring many of Trump’s tariffs, which have disrupted global trade, to be illegal. However, the court allowed the tariffs to remain in effect for the time being, giving Trump an opportunity to bring the case before the Supreme Court.
