Gold Soars as Trump's Turmoil Fuels Safe-Haven Frenzy

Gold reached a record high of $3,500.70 per ounce on September 2, 2025, as global economic uncertainty continued to drive demand for safe-haven assets [3]. This marked a continuation of a trend that saw the precious metal increase in value by nearly 33% over the past year. Analysts attributed the rise to a combination of geopolitical tensions, including the ongoing US-China trade war and Russia’s invasion of Ukraine, as well as growing concerns over the independence of the US Federal Reserve [1].

The price surge was further amplified by expectations of a potential interest rate cut by the US central bank, which would make gold more attractive to investors [1]. Adrian Ash of BullionVault highlighted that Trump’s policies, particularly the imposition of widespread tariffs and his criticisms of the Federal Reserve, had significantly influenced the market. “It was really the US election last year that really put a fire under it,” he said, emphasizing the role of political developments in shaping investor sentiment [1].

Tim Waterer, chief market analyst at KCM Trade in Australia, noted that gold remains a preferred asset during periods of uncertainty due to its relatively stable value compared to other financial instruments. “Financial markets hate uncertainty,” he said, adding that gold is often the go-to asset for traders when geopolitical or economic instability rises [2]. Derren Nathan from Hargreaves Lansdown also pointed to Trump’s attempts to undermine the independence of the Federal Reserve as a key driver of renewed interest in gold [1].

In addition to geopolitical factors, the weakening US dollar has provided further support for gold prices. Kyle Rodda of Capital.com explained that when the dollar loses value, gold typically gains in appeal among foreign investors. This inverse relationship has been particularly evident as the British pound and Japanese yen both experienced declines due to concerns over public finances and political instability in the UK and Japan [2]. As a result, gold has become an increasingly popular alternative for countries seeking to store value outside traditional US-dollar-denominated assets [2].

Investors are accessing gold through both physical bullion and financial derivatives. While bullion remains a straightforward option for individual buyers, financial products such as gold futures and exchange-traded funds (ETFs) offer institutional investors the flexibility to trade without the logistical challenges of storing large quantities of the metal [2]. According to recent data, gold is priced at $3,500.70 per troy ounce, with the spot price reflecting strong global demand and limited supply [3].

Analysts remain cautiously optimistic about the future of gold prices, with some forecasting continued upward movement in the context of ongoing global instability. However, they caution that traditional factors such as a slowdown in demand from major markets like China and India could serve as potential headwinds [1]. Currently, however, even in times of high prices, consumers in these markets are shifting toward investment-grade gold products such as coins and bars rather than reducing their overall holdings [1].

Source:

[1] Gold price hits record high as investors seek safety (https://www.bbc.com/news/articles/ceqyq7r8703o)

[2] Why is the price of gold hitting record highs? (https://www.aljazeera.com/news/2025/9/4/why-is-the-price-of-gold-hitting-record-highs)

[3] Precious Metals - Gold Spot Prices (https://www.kitco.com/price/precious-metals)