Gold Hits Record $3,500 as Trump Slams Fed Chair Powell, Markets React
Gold prices soared to a historic high on Tuesday, briefly crossing the $3,500 per ounce mark, driven by mounting investor concern following a sharp attack by US President Donald Trump on Federal Reserve Chairman Jerome Powell. The rally highlights the growing demand for safe-haven assets amid political and economic uncertainty.
By 0743 GMT, spot gold had climbed 1.5% to $3,474.41 per ounce after peaking at $3,500.05, setting a new all-time high. Meanwhile, US gold futures rose 1.8% to $3,485.10.
“The latest leg of the rally was triggered by President Donald Trump’s public attack on Federal Reserve Chairman Jerome Powell,” said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.
Trump criticised Powell for not cutting interest rates fast enough, raising questions about the Fed’s independence and sparking a sharp reaction in financial markets. Wall Street saw its indexes tumble around 2.4% on Monday, while the US dollar slid to a three-year low. A weaker dollar generally boosts gold, making it more attractive to foreign investors.
“As political uncertainty and monetary policy concerns persist, gold is likely to remain well supported,” Zumpfe added. “Key technical support levels are now seen at $3,450 and $3,400, while the next psychological target on the upside is $3,600 per ounce.”
Interestingly, gold’s rally defied usual trends. “Normally, when equities fall sharply, gold also comes under pressure due to distressed liquidation. This time that hasn’t happened,” observed StoneX analyst Rhona O’Connell.
So far this year, gold has risen by nearly 33%, underlining its role as a hedge against volatility and central bank policy shifts.
Looking ahead, traders will focus on upcoming speeches from several Federal Reserve officials, hoping to gain insights into future interest rate decisions and the central bank’s stance amid concerns over political interference.
Elsewhere in the precious metals market, silver dipped 0.6% to $32.50 an ounce, platinum gained 0.7% to $967.84, and palladium jumped 1.9% to $944.73.
