Gold soared to $3,500 an ounce for the first time on Tuesday, as investor demand for the safe haven asset surged following U.S. President Donald Trump’s new tariffs and sharp criticism of the Federal Reserve.
The precious metal briefly hit a record high of $3,500.10 an ounce before easing back to $3,467.87.
Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany said, “The latest leg of the rally was triggered by President Donald Trump’s public attack on Federal Reserve Chairman Jerome Powell.”
“As political uncertainty and monetary policy concerns persist, gold is likely to remain well supported. Key technical support levels are now seen at $3,450 and $3,400, while the next psychological target on the upside is $3,600 per ounce,” Zumpfe said.
Trump’s escalating criticism of Powell over the Fed’s reluctance to cut interest rates triggered a roughly 2.4% drop in Wall Street share indexes on Monday, while the dollar slipped to its lowest level in three years.
A weaker U.S. currency makes dollar-denominated gold more affordable for international buyers.
“It is also interesting that normally when equities hit the skids the way the U.S. markets did yesterday, gold would come down under distressed liquidation. This time that has not happened,” said StoneX analyst Rhona O’Connell.
