Gold Prices Soar to Record Highs

It might be time to dig out your old jewelry and head to the gold dealer. The precious metal has never been this expensive before. Concerns over how Donald Trump is handling the U.S. central bank are behind the price surge, writes Bloomberg.

An ounce of gold, which is 31 grams, traded overnight for $3,508, equivalent to just over 33,000 kronor. It's never been so costly to adorn oneself in gold.

The price of gold has risen over 30 percent this year.

There are several reasons behind the price increase, such as global political concerns.

But the recent sharp rise is due to expectations that the U.S. central bank, the Fed, will change its policy and start cutting interest rates. This causes investors to shift resources from interest-bearing investments to gold, which has a more long-term value.

Trump's Criticism

According to Bloomberg, there is also concern about the future of the central bank. The country's president, Donald Trump, has repeatedly criticized Fed Chair Jerome Powell for not lowering interest rates. Recently, board member Lisa Cook was also fired by Trump. The fear is that the central bank, which is currently independent of the president, could come under Donald Trump's control. This could lead to significant interest rate cuts.

Adorning the Oval Office

That it is Donald Trump's own actions driving the gold price surge might seem somewhat ironic. This is because he himself has bought lots of gold to decorate the Oval Office in the White House.

– I love gold, he said in a commercial for his new series of gold watches 2024.