Gold prices hit a record high, surpassing $3,400 per ounce, following President Donald Trump’s continued attacks on Federal Reserve Chairman Jerome Powell and the implementation of sweeping tariffs. This surge comes as the US dollar plummets to a three-year low, further eroding investor confidence in the American economy.
The precious metal’s dramatic rise is largely attributed to the ongoing uncertainty surrounding Trump’s trade policies. His recent comments, including a statement that Powell’s termination “cannot come fast enough,” have fueled concerns about the Fed’s independence and its ability to effectively manage the economic fallout from the tariffs. These escalating tensions have driven investors to seek refuge in safe-haven assets like gold.
The upward trend in gold prices has been evident throughout the year, with a remarkable 29% increase since the start of 2025. The recent tariff announcements alone have added nearly 8% to its value, highlighting the significant impact of geopolitical uncertainty on the market. Analysts at Citi predict further gains, forecasting a price of $3,500 within the next three months, driven by strong investment demand exceeding the supply from mining operations.
This surge in demand isn’t limited to individual investors. Central banks around the world are also increasing their gold reserves, further contributing to the price increase. Experts like Kenny Hu from Citi attribute this trend to a combination of concerns about US and global growth, coupled with robust institutional demand for gold. The situation underscores a growing lack of confidence in the stability of the US dollar and the broader global economy, solidifying gold’s position as a preferred safe haven.
The current market volatility is not limited to gold. Dow futures have tumbled significantly, reflecting a broader sense of unease among investors. The situation warrants close monitoring as the interplay between political rhetoric, trade policies, and market reactions continues to shape the economic landscape.
