Gold Price Hits Record $3,500 Tuesday, Falls 2.2% Wednesday

Gold prices hit a record $3,500 per ounce on Tuesday, April 22,  Investing.com data showed. 

After hitting the record Tuesday, the price of gold fell by 2.2% per ounce by 7:14 a.m. on Wednesday and the US dollar strengthened by 0.28%, Investing.com showed. 

In general though, the price of gold is high.

“We’ve seen a strong rally in gold prices, which aligns with the typical relationship we observe during periods of increased uncertainty,” Tobias Adrian, the Financial Counsellor and Director of the Monetary and Capital Markets Department of the International Monetary Fund (IMF) said during IMF Global Financial Stability Report in April 2025.

Counter to the rise in gold, the dollar weakened, as uncertainty on the market rose after US President Donald Trump announced tariffs on nearly all imports to the US – apart from imports from a select few countries such as Russia, Belarus, and North Korea.

When risky assets are sold off, investors often turn to “safe-haven” assets like gold, which has been rising in price in recent weeks, Adrian said. 

Along with the weakening of the US dollar and tougher global financial conditions hitting emerging markets hard, these circumstances led more investors to turn to safe assets like gold, he explained. 

The tariffs led to a sharp sell-off of US assets, hurting Wall Street and weakening the dollar. Meanwhile, worries about the Federal Reserve’s (FRS) independence after Trump sought to fire its head added more pressure on Treasury bonds, Reuters wrote. 

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That said, US Treasuries remain the global benchmark reserve asset – the largest and most liquid sovereign bond market, Adrian said. 

But the recent sell-off may jeopardize its status as a safe investment asset. 

“Over the past two weeks, we’ve seen an increase in yields, which is somewhat similar to the 2020 episode when yields on longer-duration assets also rose,” Adrian said at the IMF briefing.