Gold Surges Above $5,000 for First Time Amid Trump Policy Uncertainty

Gold prices hit a record high above $5,000 per ounce for the first time, driven by global uncertainty triggered by US President Donald Trump's policies. Susannah Streeter, Chief Investment Strategist at Wealth Club, highlighted the impact of trade tensions and the dollar's decline.

Analyst Stephen Inn noted that factors like central bank demand and inflation have also contributed to the surge. Patrick Munnelli, a market strategist at Tickmill Group, mentioned concerns over potential US intervention in Japan's foreign exchange market.

The US Federal Reserve's upcoming policy meeting and legal actions against Fed Chair Jerome Powell have further fueled demand for gold as a safe-haven asset. Gold demand has seen a significant increase, with a 44% jump in value year-on-year.

The World Gold Council reported a record $146 billion in gold demand in the third quarter of last year, driven by strong demand via exchange-traded funds (ETFs).