Gold prices soared to a record high on Tuesday, breaking through the $3,500 mark for the first time as investors piled into safe-haven assets amid political and economic turbulence in the United States.

The spot price of gold climbed as high as $3,508.70 a troy ounce in early Asian trading before easing slightly to $3,497. The surge eclipses the previous peak set in April, when President Donald Trump announced sweeping “liberation day” tariffs.

Bullion’s appeal has strengthened on three fronts: a weakening US dollar, expectations of a rate cut by the Federal Reserve this month, and growing fears that political pressure on the central bank could undermine its independence. Trump’s move to sack Fed governor Lisa Cook and repeated attacks on chair Jay Powell have amplified concerns that monetary policy may be steered by political rather than economic priorities.

Silver also hit a record, trading at $40.8 a troy ounce. While still priced lower relative to gold compared to historical norms, the gap has narrowed in recent months as investors look beyond bullion for returns.

The rally comes against a backdrop of heightened geopolitical risk, including Trump’s unfulfilled promises of a swift resolution to the war in Ukraine, and a longer-term trend of central banks diversifying away from the dollar. Gold overtook the euro last year to become the world’s second-largest reserve asset after the dollar, now making up 20% of official holdings worldwide. Major buyers in recent years include China, India, Turkey, and Poland.

Goldman Sachs forecasts that prices could reach $4,000 a troy ounce by mid-2026, driven by strong inflows into exchange-traded funds and sustained central bank demand.

Gold has nearly doubled in value since the start of 2023, cementing its status as the go-to hedge against inflation and economic uncertainty.