In a dramatic turn of events shaking global markets, gold surged to an all-time high, topping $3,444 an ounce, as President Donald Trump intensified pressure on Federal Reserve Chair Jerome Powell, calling for immediate interest rate cuts. The move has sparked fears over the Federal Reserve’s independence, causing investors to flee from U.S. stocks, bonds, and the dollar into the safety of precious metals.
Monday’s 2.9% jump in gold was just the latest in a relentless rally that has seen the yellow metal climb more than 30% in 2025, fueled by trade tensions, global economic uncertainty, and now, political volatility at the highest levels of U.S. economic leadership.
“Markets have less confidence in the US than ever before,” said Lee Liang Le, an analyst at Kallanish Index Services. “The ‘Trump Trade’ narrative has evolved into a ‘sell America’ narrative,” she added, pointing to the growing shift away from dollar-based assets.
Trump’s latest comments not only triggered alarm but also pushed the U.S. dollar to its lowest level since late 2023, further enhancing gold’s appeal as a hedge. Goldman Sachs has now revised its outlook, predicting that gold could hit $4,000 an ounce by mid-2026 if current trends continue.
Central bank buying and increasing flows into gold-backed ETFs have supported gold’s rise, with the metal notching gains every single month this year. Other precious metals also benefited from the rally — silver hovered just below $33 an ounce, while platinum and palladium edged higher.
As of 9:17 a.m. in Singapore, gold for immediate delivery was trading at $3,435.84, holding strong amid political and economic crosswinds. The Bloomberg Dollar Index remained flat after its steep Monday drop.
With investor confidence shaken and gold soaring, all eyes now turn to how the Federal Reserve and President Trump will navigate this tense monetary showdown — and what it could mean for the future of global markets.