Gold prices continued their record rally on Tuesday, driven by concerns over U.S. President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell, which dampened risk sentiment and drove investors towards the safe-haven bullion.
Spot gold was up 1.4% at $3,472.49 an ounce, as of 0247 GMT, after touching a record high of $3,473.03 per ounce earlier in the session.
“Investors have been giving a wide berth to U.S. assets amid tariff worries and Trump-Powell dramas, which has kept gold in prime position to capitalise on the dollar’s woes,” said Tim Waterer, chief market analyst at KCM Trade.
Trump reiterated his call for an immediate reduction in interest rates on Monday, warning that the U.S. economy could face a slowdown, while criticizing Powell’s stance to keep rates unchanged until clarity on the inflation impact of Trump’s tariff plans.
Asian stock markets struggled to maintain stability following a rapid sell-off of U.S. assets that weakened Wall Street and the dollar.
On Monday, China accused Washington of abusing tariffs and warned countries against striking a broader economic deal with the U.S. at its expense.
“There remains a chance of a pullback given the rapid rate of gains on display so far this month. But there is reason to believe that buyers will be keen on gold should a pullback occur given that high economic uncertainty remains a prevailing market theme,” Waterer said.
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Gold, viewed as a safe-haven against economic uncertainties, surpassed the $3,300 mark last Wednesday and continued its upward trajectory, crossing $3,400 on Monday.
Markets are eagerly anticipating speeches from several Fed officials later this week, hoping for insights into future monetary policy amid concerns about central bank’s independence.
Spot silver fell 0.4% to $32.57 an ounce, platinum gained 0.3% to $964.78, while palladium rose 1.3% to $939.50.
