Gold Surges Past $3,500 as Investors Flee Volatile Currencies and Equities

Renowned hedge fund manager John Paulson, one of Wall Street’s largest gold investors, has warned that central banks will continue shifting away from fiat currencies as political and economic instability escalates. His remarks come as gold prices soared past $3,500 per ounce for the first time, fueled by rising demand for safe-haven assets.

Paulson stated that the move toward gold is being driven by increased geopolitical tensions, growing trade conflicts, and mounting concerns about the global financial system.

“Gold has reached a new level of valuation,” Paulson told investors, adding that the trend will persist depending on the trajectory of global political developments.

Investors Shift from Stocks and Bonds to Safe-Haven Assets

With confidence in traditional assets waning, investors are moving away from U.S. equities, bonds, and the dollar, redirecting capital toward precious metals and other protective instruments. Paulson noted that gold is regaining status as a reliable store of value in an increasingly volatile financial environment.

Trump’s Pressure on Fed Fuels Rally

Gold’s rally was further amplified by U.S. President Donald Trump’s repeated calls for the Federal Reserve to cut interest rates immediately. The metal’s price reaction highlights concerns over political influence on monetary policy, another key driver of central bank diversification into gold.

As Paulson emphasized, central banks are hedging against systemic risk, and gold is emerging as their asset of choice in a world of declining trust in fiat money.