Gold prices soared to $3,500 an ounce for the first time on Tuesday, April 22, driven by U.S. President Donald Trump’s tariffs and his verbal attacks on the Federal Reserve.
The precious metal briefly reached $3,500.10 before settling at $3,467.87.
Gold has been hitting record highs in recent weeks as investors turn to safe-haven assets. A weakening dollar and sharp declines in global stock markets have fueled the rally. Since January, gold prices have surged over 30%.
Trump’s tariffs have escalated the trade war with China, the world’s second-largest economy. This has added to fears of a U.S. recession and heightened political tensions.
Rania Gule, senior market analyst at XS.com, explained, “These attacks have raised concerns about the independence of monetary policy, pushing investors toward gold as a store of value in uncertain times.”
On Monday, Trump called Federal Reserve Chair Jerome Powell a “major loser” in a social media post for not cutting interest rates. This followed a similar threat last week, raising speculation about whether Trump might attempt to remove Powell from his position.
Gold’s rally reflects growing uncertainty in the U.S. economy and global markets. Analysts believe the metal’s upward trend could continue as central banks worldwide increase their gold reserves.
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