Adding to investor worries are escalating trade disputes and geopolitical tensions that have dampened risk appetite and pushed investors into traditional hedges. Gold has surged more than 30% in 2025 alone, bolstered by strong inflows into bullion-backed ETFs and record-breaking central bank purchases.
Lagos, Nigeria – Gold prices skyrocketed to an unprecedented $3,500 per ounce on Tuesday, fueled by intensifying fears of political interference in the U.S. Federal Reserve and a growing exodus from dollar-based assets. The record-breaking rally underlines investor anxiety and a sweeping shift toward safe-haven holdings in a turbulent global financial environment.
The yellow metal jumped as much as 2.2% in early morning trade, briefly touching the historic $3,500 mark before retreating slightly as profit-taking set in. As of 10:37 a.m. in Nigeria, spot gold was trading at $3,454.88 per ounce—up 0.9% on the day.
The rally comes as the U.S. dollar falters, sliding to its lowest level since 2023. The Bloomberg Dollar Index, however, remained stable by mid-morning. Meanwhile, other metals showed mixed results: silver slipped, while palladium and platinum advanced amid portfolio reshuffling by investors seeking stability.
Analysts say the rally is a direct response to growing concerns over the independence of the U.S. central bank. Renewed calls from former President Donald Trump for immediate interest rate cuts have been perceived as an attempt to sway the Fed’s policy decisions—adding to market unease.
“Gold’s rapid ascent this year tells me that markets have less confidence in the U.S. than ever,” said Lee Liang Le, analyst at Kallanish Index Services. “The ‘Trump Trade’ narrative has evolved into a ‘sell America’ narrative.”
Adding to investor worries are escalating trade disputes and geopolitical tensions that have dampened risk appetite and pushed investors into traditional hedges. Gold has surged more than 30% in 2025 alone, bolstered by strong inflows into bullion-backed ETFs and record-breaking central bank purchases.
“There is a desire to diversify out of dollar assets into a broader range of safe havens,” said Kamakshya Trivedi, head of global FX, rates, and emerging-market strategy at Goldman Sachs, during an interview with Bloomberg TV.
The metal’s remarkable climb has been echoed in rallies across other safe-haven assets such as the Japanese yen and Swiss franc, both of which have gained significant ground in recent weeks.
Market analysts are now turning their attention to what lies ahead. Goldman Sachs projects gold could reach $4,000 per ounce by mid-2026 if current financial uncertainties persist. Jefferies analysts went further, calling gold “the only true safe-haven asset left” in a global investment landscape increasingly skeptical of U.S. Treasuries.
Despite the bullish outlook, some technical metrics suggest caution. Gold’s 14-day relative-strength index (RSI) has climbed above 78, far surpassing the overbought threshold of 70, a sign that a short-term correction may be due.
Still, the broader sentiment remains clear: as financial and political instability deepen, investors are betting big on gold’s timeless role as a safe harbor.
Join our Channel...