Gold prices have surged to record highs, briefly crossing $3,500 before settling around $3,400, representing a 30% increase this year.
Despite a pullback to $3,300 on Wednesday, gold continues to outperform the S&P 500, which is down 8% year-to-date. Market experts attribute gold’s rally to monetary policy uncertainty, Trump’s threats of tariffs on China, and criticism of the Federal Reserve.
While some analysts believe gold may be reaching “extremes” and could enter a consolidation phase, others suggest its value as a safe haven will remain strong amid ongoing geopolitical and economic uncertainties.