The price of gold reached an all-time high on Wednesday, for the first time, growing global trade stresses, violating a mark of $ 3,300, scrambled investors for secure-huge assets.
The bounce came up with a weak US dollar and renewed uncertainty on the proposed tariffs on important minerals by President Trump.
Gold climbed to $ 107.90, or 3.4 percent, $ 3,326.60 per troy ounces – not only a historic high, but also the most daily advantages since April 2020. The rally leads to about 6 percent or $ 200 an ounce of the rally, as Trump indicated a new wave of global tariffs.
The dollar index, which tracks the American currency against six international peers, fell 0.65 percent at its lowest level since April 2022. A weak dollar makes gold more attractive for international buyers by reducing the cost of purchasing. Since October last year, the pound increased by 0.44 percent against the greenback against the greenback.
The latest spike in gold prices is inspired by increasing fear that Trump's trade policies may rule the economic uncertainty. Their latest threats – to put tariffs on all imports of important minerals, a market controlled by China – has disturbed investors and intensified the flight for more secure property.
Goldminers listed in London were in a hurry to benefit. Endeavor mining led to an increase of 6.4 percent in shares, while Fresnillo added 2.2 percent, which helped increase FTSE 100 to 26.48 points or 0.3 percent, which shut down at 8,275.60 -The fifth consecutive day.
While FTSE increased on the strength of 100 global commodity shares, more domestic focused FTSE 250 was slightly submerged, 2.13 points down at 19,265.81.
Since the onset of 2023, gold is constant upwards, underlining the demand of investors continuously for geopolitical tensions and stability. Its appeal lies in its lack and the underlying value – without currencies, which the central banks can print, the gold supply is fixed. That finite quality has made it a property at the time of instability.
The central banks are also quietly increasing their gold reserves, which are contributing further to the demand. At the same time, the possibility of major central banks' interest rate cuts has reduced the opportunity cost of having non-shee-like property like gold, adding fuel to their rally.
Investor Bhavna was carried forward with political signs from the US. Vice -president under Trump, on Tuesday, JD Vance expected after the Brexit Trade Agreement, stating that the “great” business deal between the UK and the US had a “good opportunity” because “Trump loves the United Kingdom”.
With the approach to the dollar and business relations under pressure, there is no sign of ending the speed of gold. For now, investors are doubled on what they know: when in doubt, buy gold.
Jamie young
Jamie is a senior reporter in Business Matters, who is bringing more than a decade experience in UK SME business reporting. Jamie holds a degree in business administration and regularly participates in industry conferences and workshops. When not reporting the latest commercial developments, Jamie has emotional about advising journalists and entrepreneurs to motivate the next generation business leaders.