Gold prices have hit a record high of $3,500 an ounce, as investors react to Donald Trump’s recent attacks on the U.S. Federal Reserve Chairman, Jerome Powell.
What’s Going On?
In recent days, Trump has been putting pressure on Powell, calling for immediate interest rate cuts. He’s even suggested that Powell should be removed from his job. This has worried many investors, who are concerned that the independence of the Federal Reserve—which helps keep the U.S. economy stable—could be at risk.
How Did Markets React?
Trump’s comments shook financial markets:
- The stock market dropped, with both the S&P 500 and Nasdaq falling more than 2.3%.
- The U.S. dollar weakened, hitting its lowest level in three years.
- Investors started moving their money into gold, a common choice during uncertain times.
Gold Hits All-Time High
Because of this uncertainty, gold prices surged:
- Spot gold climbed to $3,493.41 per ounce (up 2.2%).
- Gold futures passed the $3,500 mark (up 2.3%).
- MCX gold futures crossed Rs.99000 (up 2.1%)
So far in 2025, gold prices have jumped nearly 33%, showing how nervous investors are about the global economy and politics.
What Comes Next?
Now, everyone is waiting to hear from Federal Reserve officials to see how they’ll respond. If the disagreement between Trump and Powell continues—or if the fed makes sudden changes—it could lead to even more market volatility.
In Summary
Trump’s sharp criticism of the Fed has caused concern about the future of U.S. monetary policy. As a result, investors are turning to gold as a safer investment, pushing its price to an all-time high. How this plays out could shape the markets for the rest of the year.
Until then, Happy Trading!
Commodity Samachar Securities
We Decode the Language of the Markets
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