Gold Prices Surge to Record $3,400 Amid Trump’s Fed Attacks and Tariffs

On Monday, gold prices reached an unprecedented high of $3,400 per ounce, with futures trading at $3,433.10 by mid-morning. This surge can be attributed to ongoing uncertainty surrounding the U.S. economy, fueled by President Donald Trump’s aggressive statements against Federal Reserve Chair Jerome Powell and the impact of tariffs on economic growth. The spike in gold prices represents a 30% increase since the beginning of the year. Investor confidence has significantly waned amid Trump's harsh rhetoric; calling Powell a 'loser' and suggesting that his removal from office is imminent prompted a flurry of concern regarding the integrity and independence of the Federal Reserve. The dollar concurrently dipped to a three-year low, making gold more attractive to foreign investors. As a result, an influx of capital into gold markets meant a tighter supply and anticipated price increases. According to analysts from Citi, gold could potentially rally to $3,500 in the coming months, driven by strong investment demand that surpasses mining production capabilities. This outlook is echoed by UBS, which suggests that market conditions will continue favoring gold purchases until a notable reversal pattern emerges in trading. Tariff-related uncertainties continue to loom large, especially after China communicated warnings against countries aligning with U.S. economic policies, intensifying global trade tensions. In this context, gold is viewed as a safe haven asset, shielded from political influences that threaten market stability. Market reactions show stokes confidence rather than caution around gold, diverging from trends where investors typically restrain purchases amid perceived overbought conditions. The technical indicators suggest a bullish trend, with the potential for further price increases if the dollar remains under pressure and geopolitical risks continue to escalate.