In a historic surge, gold prices climbed above $3,500 an ounce for the first time, driven by investor anxiety following a sharp decline in the US dollar and widespread losses across global stock markets. The dramatic shift comes amid escalating tensions sparked by former President Donald Trump’s aggressive criticisms of Federal Reserve Chair Jerome Powell.
Spot gold extended its remarkable rally on Tuesday morning, continuing a climb from $2,623 per ounce at the beginning of 2025. Market analysts are now forecasting that bullion could soon approach the $4,000 mark, just weeks after it first breached the $3,000 threshold.
Typically viewed as a safe haven during financial turbulence, the US dollar and government bonds have seen a significant sell-off as market volatility increasingly stems from political instability within the United States itself. As a result, investors are heavily turning to gold as a more reliable store of value.
The exodus from US assets weighed heavily on Wall Street, with the Dow Jones Industrial Average tumbling nearly 1,000 points—a 2.5% drop—on Monday. The index is now on course for its worst April performance since the Great Depression era of 1932.
Investor nerves were frayed after Trump launched another series of attacks on Powell, labeling him “Mr. Too Late” and “a major loser” for his perceived delay in slashing interest rates. The political rhetoric further undermined the dollar, which fell to its lowest level since March 2022 before recovering slightly later in the session.
Financial experts warn that if the Trump administration attempts to oust Powell before the end of his term next year, it could spark deeper concerns about inflation and monetary policy credibility.
Meanwhile, the British pound surged to a seven-month high at $1.3423, continuing its strongest rally against the dollar in over five decades. Sterling has gained 3.5% since Trump’s announcement of sweeping tariffs on April 2, which many dubbed “liberation day.”
Global markets also felt the impact: major Asian indices mirrored Wall Street’s losses, while European exchanges like Germany’s DAX and France’s CAC 40 slipped between 0.2% and 0.6%. However, the UK’s FTSE 100 and Spain’s Ibex 35 posted modest gains.
Looking ahead, US stock futures suggest slight recovery when markets reopen, although the outlook remains uncertain amid growing fears of a deeper financial crisis.
