Gold has reached a record high of $3,390 per ounce, driven by a weakening US dollar and increasing market uncertainty. President Trump’s criticism of the Federal Reserve and reports he considered firing Chair Powell have raised concerns about central bank independence, potentially undermining dollar confidence.
Trade tensions between the US and China continue to unsettle markets, with China warning other nations against deals that might harm its interests. These factors, along with expectations of a global economic slowdown, have pushed investors toward safer assets.
Institutional demand remains strong, with bullion-backed ETF holdings rising for 12 straight weeks and central banks adding to their reserves. Investment banks remain optimistic, with Goldman Sachs forecasting gold could reach $4,000 per ounce by mid-2026.