Gold prices have soared to record highs on Tuesday, reaching $3,482.76 per ounce, driven by increasing U.S.-China tariff tensions and President Trump’s threats to undermine the independence of the Federal Reserve. The recent weakness in the U.S. dollar has also bolstered demand for gold as a safe-haven asset.

Key factors driving this surge include:

• The U.S. Dollar Index has fallen to a three-year low, diminishing the opportunity cost of holding gold.
• Heightened concerns over inflation and geopolitical uncertainty have led to increased demand for gold as a hedge.
• Gold has achieved four consecutive sessions of record highs, reflecting investor distrust in traditional markets.

As conditions evolve, many foresee gold continuing to thrive as a favored asset in the face of ongoing economic instability.