Gold prices are only going one way at the moment: up. According to AFP, the price of gold hit a record high on Tuesday. An ounce, which is equivalent to about 31 grams, costs $3,500. About 22,700 kroner.
According to the news agency, this is happening at a time when US President Donald Trump's tariffs have caused unrest in the financial markets. Gold is a "safe haven" that investors in the major financial markets seek when there is unrest and price drops.
The rise in the price of gold also coincides with Trump's attack on the head of the US central bank, Jerome Powell, over Easter. The president has repeatedly criticized Jerome Powell, who is the head of the US Federal Reserve. On Monday, Trump called Powell "a huge loser" in a post on his social media site Truth Social. Trump's criticism has raised concerns about the central bank's independence and has shaken investors.
It fuels ongoing recession fears for the US economy, says Rania Gule, senior market analyst at trading group XS.com.
- These attacks have raised concerns about the independence of monetary policy and pushed investors towards gold as a store of value in uncertain times, she tells AFP.
After Trump took office in January, he promised to get the US economy under control, including through tariffs. The US tariffs have triggered a trade war with China, the world's second-largest economy after the US.
The price of gold has risen more than 30 percent since the start of the year.
Meanwhile, stock markets around the world have been gyrating in recent weeks in line with Trump's tariff announcements. Economists and bankers began to fear that the president's tariff plans could help send the world economy into recession. A recession describes a period of economic decline.
A one-kilogram gold bar currently costs about 730,000 kr. at a gold price of 3,500 dollars per ounce and a dollar exchange rate of about 6.49 kr.
jel /ritzau/AFP
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