As Gold Reaches a New All-Time High, Investors Are Pouring into the Precious Metal

As gold reaches a fresh all-time high, investors are pouring into the precious metal amid economic and political uncertainty.

Gold extended its rally on Tuesday, setting a new all-time high as investors continued to pour into the precious metal amid economic and political uncertainty.

The yellow metal rose to a peak of $3,019, further extending its recent gains.

Gold had surged for a second consecutive day and fifth time in six sessions as traders sought out safe-haven assets amid uncertainty over U.S. policy decisions, recession fears, and global geopolitical risks.

Expectations of multiple Federal Reserve interest rate cuts this year also fueled demand for the metal.

From a technical perspective, holding above the $3,000 level could support further bullish momentum. However, the Relative Strength Index (RSI) signaled overbought conditions, which suggests that the bulls may prefer a short-term consolidation or pullback.

Key support levels were seen at $2,980-$2,978, where buyers may emerge. A break below $2,956 could invite additional selling, potentially reducing prices to $2,930-$2,928, $2,900, or last week’s low of $2,880.

“Gold is not everyone’s idea of a suitable portfolio investment—former U.K. Prime Minister and Chancellor Gordon Brown once dismissed it as a ‘barbarous relic’—but the precious metal’s rise to new all-time highs is eye-catching all the same,” AJ Bell investment director Russ Mould said in a statement to CCN.

Mould attributed gold’s rally to central bank purchases and large shipments into the U.S. ahead of potential tariff impositions.

Persistent inflation and concerns over mounting government debt in the U.S. and Europe were also driving investors toward the metal.

“The metal is doing well—but gold mining stocks are yet to shine, judging by how the New York Stock Exchange Arca Gold Bugs index continues to lag. It stands no higher now than it did in April 2006, when gold traded at barely $600 an ounce, not around $3,000,” Mould noted.

For direct exposure, Mould recommended exchange-traded commodities (ETCs) or gold tracker funds, highlighting their convenience compared to storing or insuring physical gold.

For more risk-tolerant investors, he suggested gold mining tracker funds or actively managed funds selecting high-performing miners as alternative strategies.

Stock futures edged lower on Tuesday following two days of gains that had helped ease recent market losses. Dow, S&P 500, and Nasdaq 100 futures each declined by 0.3% to 0.5%.

The S&P 500 remained in correction territory despite a modest recovery, while the Nasdaq and Dow were still down for the year.

Tesla shares dropped over 3% in pre-market trading after RBC lowered its price target, citing intensifying competition in the electric vehicle market.

Investors were now keeping an eye on the Federal Reserve’s two-day policy meeting and developments in Washington.

In the foreign exchange market, EUR/USD remained above $1.09, supported by risk appetite. However, analysts cautioned that a failed fiscal reform vote in Germany’s Bundestag could weaken the euro. Strong U.S. economic data could also trigger a return of the dollar.

Meanwhile, in the crypto space, the total global crypto market cap was at $2.7 trillion, showing a 0.8% decrease in the last 24 hours. Bitcoin (BTC) was trading at $82,605, lower by 1.3% on the day.