Gold prices have reached an all-time high as many investors are buying gold as a safe asset amid uncertainty in the global economy.
So far this year, the price has increased by almost one-third reaching $3,508.50 per ounce.
Its price went up earlier this year after US President Donald Trump announce wide-range tariffs that disrupted global trade, as per BBC.
Experts believe one reason gold prices are rising is because people are concerned that the US central bank, the Federal Reserve may not be fully independent in its decision.
This concern came as Trump tried to interfere with the Federal Reserve's decision and even tried to remove one of its governor Lisa Cook.
According to Derren Nathan, these actions are seen as efforts to weaken the Fed’s independence which is causing investors to turn to safe assets like gold.
On Monday, the head of the European Central Bank Christine Lagarde warned that if Trump interferes with the Fed, it could seriously harm the US economy which greatly affect economies worldwide.
As per the outlet, even if investors drive gold prices up, the rise is often limited as people in China and India, two of the biggest buyers of gold jewellery may buy less when prices get too high.
The overall rise in gold prices is also influence by several other factors including Russia invasion of Ukraine which has created more political uncertainty which makes gold safer investment.
