Gold reached $3,500 an ounce for the first time on Tuesday, April 22 as U.S. President Donald Trump’s tariffs and his verbal attack on the Federal Reserve drove investors toward the safe haven asset.
The precious metal hit an all-time high of $3,500.10 an ounce before pulling back to $3,467.87.
Gold has posted a series of record highs in recent weeks as investors seek refuge amid a weakening dollar and sharp declines across global stock markets.
Trump’s tariffs have intensified a trade war with China, the world’s second-largest economy. Since the beginning of the year, gold has surged more than 30 percent.
The rally reflects ongoing recession fears in the U.S. economy and heightened political tensions, particularly as President Trump continues to criticize Federal Reserve Chair Jerome Powell, according to Rania Gule, senior market analyst at trading group XS.com.
“These attacks have raised concerns about the independence of monetary policy, pushing investors toward gold as a store of value in uncertain times,” Gule stated.
On Monday, Trump referred to Powell as a “major loser” in a social media post for not cutting interest rates, fueling speculation over whether he might attempt to remove the Fed chief after issuing a similar threat the previous week.