Gold prices continued their meteoric rise, hitting a new record above $3500 an ounce, as investor anxiety grew over President Donald Trump's criticism of Federal Reserve Chair Jerome Powell and concerns about the central bank’s independence.
Trump’s renewed calls for immediate interest rate cuts — coupled with speculation that he might even consider firing Powell — sent shockwaves through financial markets, weakening the dollar and prompting a shift toward safe-haven assets like gold.
U.S. gold futures firmed 2.25% to $3,502.60, following Monday’s 3.52% jump. U.S. futures also climbed, while Asian markets struggled under pressure from U.S. economic uncertainty and ongoing trade tensions with China.
"Gold’s rally reflects a broader loss of confidence in U.S. economic stability, - said Lee Liang Le of Kallanish Index Services. - The ‘Trump Trade’ has turned into a ‘sell America’ movement."
Gold has gained over 30% in 2025, fueled by central bank purchases, strong ETF inflows, and a weakened dollar. Goldman Sachs now predicts gold could reach $4,000 an ounce by mid-2026.
Despite bullish momentum, analysts caution the rally may be due for a short-term pause. The metal’s Relative Strength Index (RSI) has surged past 79, signaling overbought conditions.
Markets now await comments from Fed officials later this week for clarity on policy direction amid escalating political pressure.