Gold has been mankind’s ultimate financial refuge since Biblical times. From the treasure vaults of Pharaohs to portfolios of modern ‘masters of the universe’ money managers, the yellow metal has served as an enduring store of value and hedge against upheaval for millennia. Now, that ancient truth is being vividly reasserted amid a mounting crisis of confidence in the US dollar and its financial institutions.

With investors unnerved by political brinkmanship and economic uncertainty, gold has surged to unprecedented heights – recently breaching $3,500 per ounce for the first time. As faith in paper assets erodes, nervous capital is racing into the one asset long trusted when all else fails.

But can a few gestures of reassurance from Washington halt this flight to safety, or have recent events fundamentally altered the calculus of global trust?

At the centre of the storm is a series of policy U-turns by President Trump that were meant to soothe rattled markets. After weeks of railing against Federal Reserve Chair Jerome Powell and threatening to upend trade with China, he abruptly struck a more conciliatory tone. He backed off from firing Powell – despite having branded him a “loser” just days before – and hinted at de-escalating exorbitant tariffs on Chinese goods.

These walk-backs came only after his earlier broadsides prompted a plunge in stock prices and sent the dollar tumbling to a three-year low. The White House clearly hoped that reversing course would stem the panic. Yet one has to ask if these late concessions are enough to restore confidence in American financial stewardship, or something like patching a leaky dam after cracks have already formed.

Any rookie on Wall Street will tell you that the credibility of the Federal Reserve lies at the heart of........

© Business Recorder