Gold Hits Unprecedented High Amidst Trump's Fed Comments

On Monday, the price of gold soared past $3,400, setting a new peak. This surge was triggered by President Donald Trump's ongoing criticisms of the Federal Reserve and his aggressive tariff policies, which have made investors nervous about the state of the U.S. economy.

By 8:20 a.m. ET on Monday, gold futures climbed approximately 2.69%, reaching $3,418 per ounce. This rise reflects a significant year-to-date increase of 29%, with nearly an 8% jump following Trump's announcement of expansive tariffs on April 2.

Last Thursday, Trump openly stated that he was eager to see Federal Reserve Chair Jerome Powell leave his post. This came after Powell cautioned that the president's tariffs might have adverse effects in the short term.

According to White House economic advisor Kevin Hassett, Trump is considering the extent of his power to remove Powell. The president has consistently criticized Powell's leadership, questioning his decisions at the Federal Reserve.

The value of gold has skyrocketed throughout the year due to diminishing faith in the U.S. economy, coupled with increased buying by central banks. Analysts from Citi predict gold prices could reach $3,500 in the upcoming months as investment interest continues to exceed mining supply.

Citi analysts, led by Kenny Hu, recently noted to clients that ongoing worries about U.S. and global economic growth related to tariffs are likely to persist, alongside robust demand from central banks and other large institutions.