Gold prices have shattered records, surpassing the critical $2,900 per ounce threshold for the first time as investors flock to safe-haven assets amid escalating trade war concerns and heightened inflation fears. The surge follows U.S. President Donald Trump’s renewed tariff threats, which have intensified economic uncertainty.
As global economic uncertainty rises, central banks worldwide are significantly increasing their gold reserves. This strategic move is a response to the negative impacts of aggressive monetary policies, such as quantitative easing and low interest rates, which have led to currency devaluation and market instability. Gold has long been recognized as a safe haven asset, offering stability and protection during volatile times. As central banks diversify their reserves to mitigate risks, individual investors can take a page from their playbook by incorporating gold into their portfolios.