The price of gold reaches a record because investors are looking for security

The price of gold has reached a record because the demand for precious metal remains strong in a global economic context.

The price of gold spot reached $ 3,508.50 per start on Tuesday, continuing its upward trend which saw it increase by almost a third this year.

Precious metal is considered to be a safer asset for investors in times of economic uncertainty, and its price increased earlier this year after US President Donald Trump announced major rates that have turned the world trade upside down.

Analysts indicate that the price has also been raised by the expectations that the American central bank will reduce its key interest rate, making gold an even more attractive perspective for investors.

Adrian Ash, director of research at Bullionvault, told the BBC Today program that the increase in gold prices in recent months was really in Trump and “what he has done to geopolitics (and) what he has done in world trade”.

“It is really the US elections last year that really put a fire underneath,” he said.

Analysts also cite concerns about the independence of the American central bank, the federal reserve, like another factor stimulating the price of gold.

Trump launched repeated attacks on the president of the federal reserve, Jerome Powell, and recently tried to dismiss one of his governors, Lisa Cook.

Derren Nathan de Hargreaves Lansdown said that it was “Trump’s attempts to undermine the independence of the Federal Reserve Bank” that “stimulated a renewed interest in security assets, including gold”.

On Monday, the head of the European central bank Christine Lagarde warned that if Trump was to undermine the independence of the Fed, this would represent a “very serious danger” for the world economy.

She said that if the Fed was forced to respond to Trump’s policy, it would have a “very worrying” impact on economic stability in the United States, and therefore in the rest of the world as well.

Mr. ASH added that when the price of gold increases due to the interest of investors, it was generally tempered by a slowdown in purchase in China and India – two of the largest markets for gold jewelry.

But this time, he said that Gold continued to find demand in China and India because, rather than getting out of the market during high price periods, jewelry buyers turn to the purchase of investment gold products such as bars or parts.