“Gold Reached a Record High Amid Concerns About the Fed After Trump’s WordsThe price of gold soared to record highs, exceeding $3486 per ounce, due to fears that Trump would fire the head of the Fed. This triggered a flight from the dollar and American assets.”, — write: unn.ua
DetailsBullion exceeded $3,486 an ounce after jumping 2.9% on Monday. Trump called on the Fed to immediately cut interest rates, which is seen as a threat to the independence of the US central bank, which sent the dollar to its lowest level since 2023.
“The rapid rise in gold this year tells me that markets trust the US less than ever,” said Li Liang Le, an analyst at Kallanish Index Services. – The story of “Trump’s trade” has turned into the story of “sell America.”
Gold has risen by a third in 2025, amid trade tensions rattling markets and undermining confidence in dollar assets, which has strengthened some traditional safe-haven assets. Inflows into bullion-backed exchange-traded funds and central bank purchases have supported the rally, and prices have risen every month this year.
Banks have become increasingly positive on gold, as this year’s rally has become stronger and stronger. Among them, Goldman Sachs Group Inc. predicts that the metal could reach $4,000 an ounce by the middle of next year.
However, the rapid recent growth has stretched some closely watched indicators, suggesting that the rise may stop at some point. The 14-day relative strength index of bullion – a measure of the pace and intensity of movements – exceeded 79, which is above the level of 70, which may indicate that the asset is overbought.
Gold for immediate delivery traded 1.8% higher at $3,484.38 an ounce at 11:25 am in Singapore. The Bloomberg Dollar Index fell again after falling 0.7% on Monday. Silver was little changed in price, while palladium and platinum rose.
The jump in bullion prices has lifted mining stocks. In Hong Kong, shares of Zijin Mining Group Co., a leading Chinese metal producer, rose more than 6% on Tuesday. This year they have grown by more than a quarter.
Gold breaks records due to weak dollar and continued trade war fears21.04.2025, 09:03 • 4258 views