New historical record: gold has not been so expensive for thousands of years
22 April 2025 15:07
Gold prices briefly crossed the $3,500 per ounce mark on Tuesday, hitting an all-time high, after US President Donald Trump criticized Federal Reserve Chairman Jerome Powell. The criticism hit investors and increased demand for this safe-haven asset, "Komersant Ukrainian" reports citing Reuters.
As of 12:25 Kyiv time, the spot price of gold rose by about 1% to $3,457 per ounce, having reached $3,500.05 earlier. Gold futures in the US rose by 1.3% to $3,469.
“The last stage of the rally was triggered by President Donald Trump’s public attack on Federal Reserve Chairman Jerome Powell,”
– commented Alexander Zumpfe, precious metals trader at Heraeus Metals Germany.
“As political uncertainty and monetary policy concerns persist, gold is likely to remain well supported. Key technical support levels are currently seen at $3,450 and $3,400, while the next psychological upside target is $3,600 per ounce,”
– Zumpfe added.
Trump’s increasingly loud attacks on Powell over the lack of interest rate cuts sent Wall Street stocks plunging by about 2.4% on Monday, and the US dollar hitting three-year lows. The weakening of the US currency makes gold, which is priced in dollars, cheaper for foreign buyers.
“It’s also interesting that usually when stocks fall as they did yesterday in the US markets, gold also falls due to forced liquidation of positions. This time it did not happen,”
– said Rhona O’Connell, an analyst at StoneX.
Gold prices, which are traditionally considered a safe-haven asset in times of economic and geopolitical uncertainty, have risen by almost a third since the beginning of this year.
Traders will be awaiting speeches from several Fed officials later this week, hoping to gain insight into future monetary policy amid concerns about the central bank’s independence.
The spot price of silver remained stable at $32.68 an ounce, platinum rose 1% to $971.40, and palladium jumped 1.8% to $944.27.
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The historical role and value of gold
Since ancient times, gold has played an exceptional role in the development of human civilization. The first evidence of its use dates back to around 4000 BC in ancient Egypt and Mesopotamia, where it was valued for its rarity, beauty and resistance to corrosion. Pharaohs and rulers demonstrated their wealth and power through gold jewelry, masks, and household items that later became priceless archaeological finds.
As trade developed, gold naturally evolved into a universal medium of exchange because it was portable, divisible, homogeneous, and had a stable intrinsic value. The first gold coins appeared around 700-600 BC in Lydia (modern Turkey), and subsequently the gold standard became the basis of the international monetary system for several centuries. Even after the abolition of the gold standard in 1971, when U.S. President Richard Nixon ended the convertibility of the dollar into gold, central banks continue to hold significant gold reserves as a strategic asset.
Since the beginning of its history, gold has symbolized not only economic wealth but also spiritual and cultural value. Many religious and cultural traditions have associated this precious metal with divine powers and eternity. Gold objects were used in rituals, temples and shrines, and in art, gold was often used to depict holiness, divine light and higher power. The cultural significance of gold is reflected in numerous myths, legends and literary works, from the legend of King Midas to the search for the golden fleece.
In today’s world, gold retains its role as a reliable store of value and a safe haven in times of economic crisis and geopolitical instability. Its value usually increases when confidence in paper currencies and financial markets falls. In addition to its investment value, gold is widely used in electronics, medical equipment, dentistry, and aerospace due to its unique physical and chemical properties – high electrical conductivity, corrosion resistance, and ductility. These features ensure that gold is in constant demand and make it not only a symbol of wealth but also a strategically important raw material for the development of high-tech industries.
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