Gold Breaks $3,500 Barrier as Trump-Powell Tension Spooks Markets

Gold reached a historic milestone on Tuesday, briefly trading above $3,500 per ounce following President Trump’s public criticism of Federal Reserve Chair Jerome Powell. Trump warned of an economic slowdown unless the Fed cuts interest rates, causing investor anxiety and driving up demand for gold as a safe-haven asset. Gold prices settled at $3,457.12 per ounce, having gained nearly 33% this year.

Analysts note that gold is likely to remain well-supported due to ongoing political uncertainty and monetary policy concerns, with $3,600 being the next target. Trump’s vocal attacks led to Wall Street indexes falling approximately 2.4% on Monday, while the dollar hit three-year lows. Unlike previous market downturns, gold did not experience a sell-off, highlighting its current strength. Investors are now looking to upcoming speeches by Fed officials for insights into future monetary policy amid concerns about the central bank’s independence.