Amidst Fierce Criticism from President Trump, Investment Markets Shift Towards Safe-Haven Assets
Influenced by U.S. President Trump’s vehement attacks on the Federal Reserve (Fed) Chairman Jerome Powell, investment markets have become turbulent, with funds rapidly shifting toward safe-haven assets. As a result, gold prices surged on Tuesday, reaching a historic high of $3,500 for the first time, becoming the focal point of the market.
Gold Breaks Historical High, Market Fully Shifts to Safe-Haven Mode
According to quotes, spot gold reached $3,469 per ounce, up 4%, and earlier touched a historic high of $3,500.05. Meanwhile, U.S. gold futures also rose 2.3%, reaching $3,502.40 per ounce.
Tim Waterer, Chief Market Analyst at KCM Trade, stated: “In the midst of trade tariff turmoil and the power struggle between Trump and Powell, investors are avoiding U.S. assets and embracing gold, which is undoubtedly a significant positive for gold prices.”
Trump Strikes Again: Calls for Immediate Rate Cuts from the Fed
On Monday, Trump once again pressured the Federal Reserve, reiterating his stance that interest rates should be cut immediately. He warned that the U.S. economy could face slowing risks and criticized Powell for remaining inactive before inflation and trade tariffs were clarified. This series of statements further undermined market confidence and intensified concerns over the independence of the Fed.
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Even a puzzling statement from Trump sparked heated discussions in the market regarding gold. He stated: “The golden rule of negotiation and success is that whoever has the gold makes the rules.”
Asian Stock Markets Volatile, Dollar Under Pressure
Trump’s remarks not only triggered gold buying but also caused volatility in Asian stock markets. U.S. assets were rapidly sold off, further weakening the dollar’s performance. Investors expressed concerns over the stability of U.S. fiscal and monetary policy, resulting in a surge in safe-haven demand.
At the same time, China added fuel to the fire, criticizing the U.S. for abusing tariff measures and warning other countries not to reach economic agreements at the expense of their own interests.
Is Gold’s Short-Term Surge Overdone? Technical Signals Emerge
Despite the bullish market sentiment, analysts also advised investors to remain vigilant. Waterer pointed out: “The remarkable increase this month does not exclude the possibility of a technical pullback in the short term. However, in the context of continued economic uncertainty, each dip in gold prices could attract a new wave of buyers.”
From a technical perspective, the current relative strength index (RSI) for gold is as high as 79, entering overbought territory, which suggests that short-term upward momentum may be weakening.
Market Focus on Fed Officials’ Remarks, Seeking Policy Direction
The market’s next focus will be on the public speeches of several Federal Reserve officials this week. Investors hope to find clues to gauge the future direction of interest rates and whether the Fed will change its policy under political pressure.
Silver, Platinum, and Palladium Also Rise
In addition to gold, other precious metals broadly increased. Spot silver rose 0.3%, quoted at $32.80 per ounce; platinum increased by 1.1%, reaching $972.20; palladium surged by 2.2%, climbing to $948.14.
Safe-Haven Sentiment Persists, Gold Market Becomes Bullish Battlefield
This year, gold prices have risen nearly 33%, making it the biggest winner amid global economic uncertainty. The tense relationship between Trump and the Fed, renewed trade conflicts, and market confusion over central bank policies have all driven gold to continue hitting new highs. As long as these variables remain, gold is unlikely to cool down in the short term.
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