Gold prices reached record highs of over $3,800 (£2,818) per ounce on Tuesday as the US Federal Reserve Chair Jerome Powell indicated that stocks are overvalued and the central bank faces a challenging situation of balancing inflation risks with a softening labour market, snapping a 3-day stock market rally.
Gold is considered a time-tested tangible asset. The precious metals' universal demand, scarcity, exchangeability, and portability drive its value appreciation over time. Gold's intrinsic store of value and a negative correlation with stock market movements have made it one of the few asset classes that reached record highs during global recessions in the last half-century. Gold remains a top investment choice for hedging against inflation and protection from the volatility of stocks and fiat currencies, such as the US dollar.
