Gold prices surged to a record high of over $3,400 an ounce as the US dollar weakened and President Donald Trump’s criticism of the Federal Reserve weighed on market sentiment. The precious metal has been a safe-haven asset during the ongoing trade war with China.
Trump’s comments about firing Fed Chair Jerome Powell have raised concerns about central-bank independence and sparked worries that monetary policy will be politicized, leading to increased demand for gold. This has contributed to the longest 12-week rally in bullion-backed exchange-traded funds since 2022.
Global demand for gold is underpinned by robust central bank buying, with China warning nations against striking deals with the US at the expense of Beijing’s interests. Goldman Sachs forecasts that gold prices could reach $4,000 an ounce midway through next year, further supporting its price momentum.
Spot gold prices rose 3.1% to touch $3,430.57 an ounce, while silver reversed a early drop to push 0.4% higher. The Bloomberg Dollar Spot Index fell 0.7%, adding to the dollar’s decline and driving up gold prices.
Source: https://finance.yahoo.com/news/gold-hits-record-dollar-sags-060059268.html