In an extraordinary shift of global investor sentiment, gold prices surged to a record high of $3,500 per ounce this week, fueled by deepening uncertainty around U.S. economic policy, political interference fears at the Federal Reserve, and an eroding confidence in the dollar. This milestone highlights a broader strategic pivot by investors toward alternative stores of value amid widespread economic instability.
Gold’s meteoric rise—a 30% gain in 2025 alone—underscores a growing trend: investors are actively diversifying away from dollar-denominated assets in favor of stable hedges such as bullion, the Japanese yen, and the Swiss franc. The trigger? Renewed calls from former President Donald Trump urging the Fed to slash interest rates, a move interpreted by markets as a direct threat to the central bank’s autonomy.
According to Kallanish Index Services analyst Lee Liang Le, “The ‘Trump Trade’ narrative has evolved into a ‘sell America’ narrative,” signaling waning investor trust in traditional U.S. financial instruments. This erosion of faith is pushing both institutional and retail investors toward gold-backed ETFs and central bank reserves.
Central banks have been instrumental in this rally, with notable increases in bullion reserves across Asia and the Middle East. According to the World Gold Council, central banks collectively bought over 1,000 metric tons of gold in 2024, the highest annual figure in over a decade, and 2025 is already on pace to surpass that record.
Meanwhile, investment giants like Goldman Sachs project that gold could hit $4,000 per ounce by mid-2026, citing persistent global financial risks. Jefferies analysts
