A gold bar of a kilogram in Gold Investments Ltd. Bullion Distribuits organized in London, the United Kingdom, on April 3, 2025.
Chris Ratcliffe | Bloomberg | Getty images
Gold prices broke $ 3,400 on Monday, reaching a new record as the threats of President Donald Trump against the independence of the Federal Reserve and his tariffs shake the confidence of investors in the US economy.
Golden Futures increased 2.91% to close to $ 3,425.30 per ounce, and investors bought the precious since the dollar reached a minimum of three years. Gold has jumped around 30% since the beginning of the year and around 8% since Trump announced his tariffs on April 2.
The president increased the pressure on the president of the Fed, Jerome, calling him a “great loser” and demanding that the Central Bank decrease the interest rates now.
Trump said last Thursday that Powell’s termination cannot be fast enough, “after the head of the US Central Bank. Uu warned that the president’s rates will probably increase inflation in the short term. Trump is investigating if he can say goodbye to Powell, said the Economic Advisor of the White House, Kevin Hassett on Friday.
Gold has been in a tear this year, since confidence in the US cataracts and central banks buy the precious metal. Citi sees that gold prices recover at $ 3,500 in the next three months as the investment demand exceeds the supply of mining.
“We estimate that global growth conerns related to the rate and the global growth continue to combine with a strong central bank and another institutional demand,” analysts led by Kenny Hu in a recent note said.