Gold Almost Hits $3,500 as Trump's Attacks on Powell Unsettle Markets
Gold hit a record $3,500 per ounce for the first time early Tuesday as President Donald Trump's renewed attacks on Federal Reserve Chair Jerome Powell unnerved markets and sent investors into safe-haven assets.
KEY TAKEAWAYS
- Gold reached a record high of $3,500 per ounce early Tuesday.
- Trump's renewed attacks on Fed Chair Powell shook market confidence.
- Investors see these attacks as a threat to the Fed’s independence.
- Gold futures are currently trading at $3,470 per ounce.
- The weakening U.S. dollar is also driving gold prices higher.
- Chinese buying is adding further momentum to the gold rally.
Gold futures are now at $3,470 per ounce and have closed at record highs over 20 times this year, shaken by Trump’s unpredictable trade moves. His criticism of Powell is seen as a threat to the Fed’s independence, a key pillar of the global economy.
At $3,500, gold has already beaten the 12-month targets of many Wall Street banks, according to Reuters projections.
UBS, which set a $3,500 target, says Chinese demand could push prices even higher. This year, China allowed top insurers to begin purchasing gold.
Another driver is the weakening U.S. dollar. Since gold is priced in dollars, a weaker dollar supports its price. The U.S. dollar index stood at 98.38 early Tuesday, down from 99.38 last week.