Gold Hits Record High Above $3,500 as Tariff and Fiscal Worries Spark Safe-Haven Rush
Gold prices briefly broke above the $3,500 per ounce mark on Tuesday, setting a new all-time high as global investors rushed toward safe-haven assets. The sharp rally came amid rising concerns over U.S. fiscal problems, growing debt, and fears of fresh tariffs that could slow global trade.
Investors are increasingly worried that the U.S. government’s expanding deficit and political uncertainty could hurt the economy. These concerns, combined with recent market volatility and falling risk appetite, triggered heavy buying in gold, which is seen as a stable store of value during times of crisis.
The move was also fueled by expectations that the Federal Reserve may cut interest rates soon to support growth. Lower rates typically weaken the U.S. dollar and boost gold prices, making the metal more attractive for international buyers.
Earlier in the session, XAU/USD spiked to around $3,547, before pulling back slightly as traders booked profits. Analysts say the rally reflects both fear-driven buying and speculation that gold could continue to climb if economic uncertainty deepens.
Safe-haven demand is also being supported by geopolitical tensions and concerns about slowing global growth. This mix of factors is keeping gold in focus for traders and long-term investors alike.
Impact:
A sustained rally in gold could pressure the U.S. dollar, pushing pairs like EUR/USD and GBP/USD higher, while boosting safe-haven currencies such as JPY and CHF as risk aversion spreads.
