Gold Surges to $3,500 as Markets React to Trump’s Fed Criticism

Gold Surges to $3,500 as Markets React to Trump’s Fed Criticism

Key Highlights:

Gold reached a record high of $3,500 per ounce early Tuesday.

The surge was driven by renewed criticism of Federal Reserve Chair Jerome Powell by President Donald Trump, which shook investor confidence and fueled demand for safe-haven assets.

Gold futures are now trading around $3,470 per ounce.

Gold hit an all-time high of $3,500 per ounce Tuesday morning as President Trump’s fresh attacks on Fed Chair Jerome Powell raised concerns about the Federal Reserve's independence, prompting a flight to safety among investors.

Trump’s comments, which many see as undermining the Fed’s credibility, have added to broader market anxiety—especially amid his unpredictable trade policies. So far this year, gold has closed at record highs more than 20 times.

The $3,500 mark has already surpassed the 12-month price targets of several Wall Street banks. UBS, which had set a $3,500 target, noted that increased gold demand from China—where top insurers were recently allowed to buy gold—could drive prices even higher.

Also supporting gold’s rally is a weakening U.S. dollar. Since gold is priced in dollars, a softer dollar tends to lift gold prices. The U.S. dollar index slipped to 98.38 early Tuesday, down from 99.38 at the end of last week.