Gold hit a new record high on Tuesday, while the dollar held steady and stock markets fluctuated, as U.S. President Donald Trump’s latest attack on Federal Reserve Chairman Jerome Powell reinforced concerns about central bank independence.
As the wave of U.S. tariffs continues to spark turmoil in global trading markets, investors now face growing concern that the U.S. president will try to sack the country’s top banker.
Trump criticized Powell last week for warning that the overall tariffs would likely reignite inflation, saying, “Terminating his service is not going to come fast enough,” adding, “I’m not happy with it. I told him that, and if I want him to leave, he’ll leave quickly, believe me.”
While that raised eyebrows, the Republican business tycoon raised concern in markets on Monday by again calling on the Fed chairman to make preemptive rate cuts, calling him a “big loser” and a “very late man.”
He said on his platform Truth Social that there is “almost” no inflation, claiming that energy and food costs are significantly low, and pointed to the ECB’s numerous cuts.
These bouts have fueled concern that Trump is preparing to oust Powell, with his chief economic adviser Kevin Hassett saying Friday that the president is considering the possibility of doing so.
Panicked Wall Street investors returned to selling U.S. assets, with all three major indexes closing down about 2.5% on Monday.
National Australia Bank’s Tapas Strickland said: “The first batch on Thursday had little reaction from the market, but the second batch on Monday saw an intensification of the ‘selling of America’.
Whether or not President Trump is legally capable and willing to act against the US Federal Reserve underscores the loss of American exceptionalism and the real political risks for investors.”
XAU hits $3,500 as tensions and anxiety escalate
Gold hit a new record high of $3,500 an ounce for the first time in the early hours of Tuesday morning, as President Donald Trump’s renewed attacks on Federal Reserve Chairman Jerome Powell alarmed markets and pushed investors into safe-haven assets.
Gold futures, currently trading at $3,470 an ounce, closed at record highs more than 20 times this year as investors worried about Trump’s unexpected trade policies. Trump’s attacks on Powell are seen as threatening the independence of the Federal Reserve, a key pillar of the global economy.
At $3,500, gold has already exceeded the 12-month targets set by many Wall Street banks, according to forecasts compiled by Reuters. UBS is setting a gold target at $3,500, but has indicated that buying China could raise the price of the precious metal. This year, China allowed its biggest insurers to start buying gold.
Investors have increased their appetite for gold to buy the US dollar. Gold is priced in US dollars, which means that the depreciation of the US dollar supports the precious metal. The U.S. dollar index, which measures the dollar’s performance against a basket of foreign currencies, came in at 98.38 early Tuesday, down from 99.38 at the end of last week.
U.S. industrial company 3M (MMM) cut its 2025 profit forecast on Tuesday as tensions over tariffs escalated, sending its shares down 2.5% in pre-market trading.
Global trade tensions have escalated since China imposed 125 percent tariffs on U.S. imports, in response to President Donald Trump’s decision to raise tariffs on Chinese imports to 145 percent. In March, 3M reported that China accounts for about 10 percent of its global revenue.
Gold is preparing to test 3400 amid anticipation of US data
Major economic indicators and global events consistently push the price of gold to all-time highs. While pessimists are confident of the end of gold’s bullish momentum, buyers are still looking forward to the $3,500 level, and possibly the $3,800 level.
In this article, we will discuss the next possible move for gold from April 21 to 25, and introduce you to the main buying and selling zones.
Major economic events of the week
Several important US economic reports are due this week, all of which could significantly affect the XAUUSD pair.).
The preliminary purchasing managers’ index (PMI) data for April 24 and the weekly US jobless claims for April 25 are the most prominent developments. Preliminary PMI data will provide information on the state of the manufacturing and services sectors, and any signs of a weakening economy that may increase demand for safe-haven gold. On the other hand, better-than-expected PMI data should support the US dollar and lower the price of gold.
Meanwhile, jobless claims data is one of the most important indicators of the labor market. An unexpected rise in the numbers would raise concerns about the weakness of the economy, which would increase demand for the gold/US dollar pair (XAUUSD) as a hedging tool. However, the strength of the labor market will support the Federal Reserve’s policy of raising the interest rate in the long term, which will put short-term pressure on gold. As price fluctuations reflect changes in expectations on Fed policy and sentiment Traders are likely to be cautious in the lead-up to these events.
Gold HTF Overview)
Since the beginning of this upward rally in early 2025, gold has offered little comfort to sellers, and has continued to have unprecedented buying momentum.
