Gold Surpasses $3,500 for the First Time in History
On Tuesday, the price of gold ounce exceeded $3,500 for the first time in history amidst ongoing trade tensions and disputes between U.S. President Donald Trump and Federal Reserve Chairman Jerome Powell, which have led to declines in Wall Street.
As of 7:30 AM GMT, the price of gold reached $3,467.87 after earlier hitting $3,500.10.
Gold is benefiting from market volatility, particularly on Wall Street, due to Trump’s repeated attacks on the Federal Reserve Chairman and ongoing uncertainties regarding the trade war.
The latest sign of escalation between Beijing and Washington came Tuesday when China reiterated its firm opposition to any agreement signed between the United States and other nations that would not serve its interests.
Investors are now waiting for the first tangible impacts of the trade war as the International Monetary Fund prepares to release new economic forecasts on Tuesday.
Amid the trade disruptions prompted by Trump since early April, investors have shifted towards purchasing gold, considering the possibility that tariffs could drive inflation, consequently lowering the value of the dollar, against which gold offers protection.
