Gold prices hit a new record high on Friday as investors sought safety amid growing worries over the US economy’s credit health and rising trade tensions between Washington and Beijing. Spot gold surged up to 1.2% to $4,379.93 per ounce, pushing its market capitalisation to $30 trillion and setting it on course for the biggest weekly gain since 2008. The rally, which began in August, has accelerated in recent weeks on speculation that the US Federal Reserve may introduce a larger-than-expected rate cut this year.
Silver followed suit, climbing to a record $54.3775 per ounce on Friday before trimming gains. The surge in precious metals reflects investors’ flight to safe-haven assets after two US regional lenders reported loan fraud issues, sparking fears about credit stability. Renewed US-China trade tensions have further driven demand for gold.
Over the past three years, gold prices have skyrocketed by 165.61%, including a 65% jump this year alone. Analysts attribute this to strong central bank buying, heavy inflows into ETFs, persistent geopolitical uncertainties, high debt levels, and concerns about the Federal Reserve’s independence.
