The price of gold has jumped to a new record as investors worry about the growing trade war between the United States and China.
On Wednesday, the price of gold reached $3,357.40 (about ₦4.9 million) per ounce before dropping slightly. Since the beginning of the year, the value of gold has gone up by nearly one-third.
Many investors are turning to gold as a safe option during uncertain economic times. This rise followed a warning from the head of the US central bank, Jerome Powell, who said the tariff policies of President Donald Trump could lead to slower economic growth, higher prices, and job losses.
Speaking at the Economic Club of Chicago, Powell explained, “Higher-than-expected tariffs announced in recent weeks could result in slowing US economic growth and rising prices for consumers.”
These concerns have caused major tension in global financial markets. The US government has placed high taxes—up to 145%—on many goods imported from China since Trump returned to power in January. In response, China has added 125% tariffs on American products.
There is also confusion about whether the US will place more tariffs on other countries after pausing some for 90 days.
Stephen Innes, a top trader at SPI Asset Management, said gold is now in “full lifeboat mode,” calling it “the most crowded trade on the planet.”
“The dollar is stumbling under the weight of trade-policy whiplash,” he added, noting that many investors no longer trust decisions influenced by politics.
Jesper Koll, from the financial advisory firm Monex Group, also commented, “Everyone is looking for ‘real’ assets. It’s increasingly clear that Team Trump’s ‘move fast and break things’ approach to policy-making will not change.”
Analysts say this sharp rise in gold is similar to what happened during the Iranian Revolution over 40 years ago when gold prices doubled in just three months.
The Trump administration believes the tariffs will bring back manufacturing jobs to the US and boost the economy. But for now, investors are choosing gold as a safer place to put their money in this period of global uncertainty.
