Gold price continues to climb
The spot price of gold soared to even greater heights on Wednesday 3 September 2025 coming in at $3,560.85 per ounce, surpassing its previous all-time record set on Tuesday of $3,530, which in turn was an improvement on its April peak of $3,500.05 per ounce.
Gold is known as a safe haven investment in turbulent economic times. Uncertainty brought on by President Donald Trump’s controversial tariff policy has seen gold gains jumping by more than 30% this year. His repeated attacks on the Fed’s independence further fuelled investors seeking refuge in gold.
In an unprecedented move last week, Trump fired Lisa Cook as governor of the Federal Reserve citing “sufficient reason” to believe Cook lied on her mortgage application. Before her removal Cook was part of a 12-member committee that determines US interest rates.
She is challenging her removal in court on the grounds that Trump was over-reaching and that the US Constitution does not give him powers to remove Federal Reserve governors from office.
Trump is also reported to exert excessive pressure on Federal Reserve chair Jerome Powell to lower interest rates. His removal of Cook can be seen as move to increase his influence in the Fed by replacing her with someone, who will more easily bend to his will.
Bullion’s strong performance this week is being attributed to a weaker dollar as well as the prospects of an interest rate cut, the first in nine months, by the US Federal Reserve.
