The price of gold has hit a record high as demand for the precious metal remains strong amid global economic uncertainty.
The spot gold price hit $3,508.50 per ounce early on Tuesday, continuing its upwards trend which has seen it rise by nearly a third this year.
The precious metal is viewed as a safer asset for investors during times of economic uncertainty, and its price rose earlier this year after US President Donald Trump announced wide-ranging tariffs that have unsettled global trade.
Analysts say the price has also been lifted by expectations that the US central bank will cut its key interest rate, making gold a more attractive prospect for investors.
Adrian Ash, director of research at BullionVault, stated that the rise in gold prices over the past few months is largely attributed to Trump's influence on geopolitics and global trade.
He noted that last year’s US election brought significant attention and investment to gold.
Concerns over the Federal Reserve's independence are also seen as a key factor driving gold's appeal.
Trump's recurring criticisms of Federal Reserve chair Jerome Powell and political interference attempts are creating a climate where safe-haven assets like gold are sought after.
Christine Lagarde, head of the European Central Bank, cautioned against undermining the Fed's independence, warning of serious repercussions for the global economy.
Typically, a surge in gold prices corresponds with a decrease in demand from China and India—major gold markets—yet current trends indicate ongoing interest from these regions as investors shift towards gold bars and other investment products instead of jewellery.
