Gold price hits record high as safe-haven demand rises

Gold prices surged to a record high for the second time in a week on Tuesday, rising above $3,013. As reported by Reuters, uneasiness sparked by President Donald Trump’s tariff policy continued to fuel demand for safe-haven assets.

The yellow metal, historically regarded as a hedge against geopolitical instability, has gained more than 14% this year. As Edward Meir of Marex explains, gold continues to rise on account of a weaker greenback and ongoing trade tensions. The US dollar index is currently wallowing near a five-month low, making gold cheaper for overseas buyers.

New forecasts from Federal Reserve officials this week will provide clear evidence of the potential impact of Trump's policies on the US economy, the agency's experts say. 

Many analysts have already downgraded their expectations for US GDP growth this year, expressing concerns about a possible recession in the country, as well as quickening inflation, Reuters emphasizes.