Kathmandu- Escalating trade war between the U.S. and China have fueled global economic uncertainty, pushing gold prices to record highs as investors seek safe haven assets.

On Wednesday, gold hit an all-time high of $3,357.40 per ounce in the international market, up nearly 30 percent since the start of 2025.

In Nepal, gold prices have also set new records. On Wednesday, it reached Rs 187,000 per tola, then jumped to Rs 190,600 per tola on Thursday. Nepal sets gold prices based on the international rate fixed at midnight, adding customs duties, bank and trader margins, and foreign exchange adjustments.

U.S. Federal Reserve Chair Jerome Powell warned that President Donald Trump’s trade policies could fuel inflation and slow the economy, adding recent tariff hikes as potential threats to U.S. growth.

As uncertainty grows, countries like China, India, Turkey, Brazil, and Singapore have increased gold reserves, further boosting global demand.

 Meanwhile, the U.S. Federal Reserve’s hints at cutting interest rates have made bonds and cash less appealing, steering more investors toward gold.

Gold now stands as the top investment choice. With policy-driven volatility weakening the dollar, analysts say investors no longer trust politically influenced assets.

The surge in gold prices is the sharpest since the 1979 Iranian Revolution, when prices soared nearly 120 percent in a few months.

Today, investors are again turning to gold in search of real, stable assets.

Since returning to office, President Trump has imposed tariffs of up to 145 percent on Chinese goods. China responded with up to 125 percent tariffs on U.S. imports. Proposed tariffs on other countries have been suspended for 90 days.

While the Trump administration claims the tariffs will revive U.S. industries, create jobs, and boost tax revenue, analysts warn they could raise consumer prices and slow global growth.