Key points
- Spot gold gains over $700 since the start of 2025
- Dollar slides as Trump poses potential threat to Fed independence
- Palladium slips 3 per cent
ISLAMABAD: Gold surged above $3,400 to a record high on Monday, as the dollar weakened and uncertainty over the economic impact of US-China trade tensions spurred demand for safe-haven bullion.
Spot gold rose 2.7 per cent to $3,417.62 an ounce at 1:46 p.m. ET (1746 GMT). Prices hit a record high of $3,430.18 earlier in the session. US gold futures settled 2.9 per cent higher at $3,425.30, according to Reuters.
The precious metal reached an all-time high of $3,500.10 an ounce before pulling back to $3,467.87.
Gold has hit a series of record highs in recent weeks as investors seek refuge amid a weakening dollar and following sharp losses across stock markets.
Trump’s tariffs have sparked a trade war with China, the world’s second biggest economy after the United States. Gold is up more than 30 per cent since the start of the year, according to AFP.
Recession fears
The “rally reflects ongoing recession fears in the US economy and heightened political tensions, especially as President Donald Trump continues to attack Federal Reserve Chair Jerome Powell”, noted Rania Gule, senior market analyst at trading group XS.com.
“These attacks have raised concerns about the independence of monetary policy, pushing investors toward gold as a store of value in uncertain times.”
Trump on Monday called Powell a “major loser” for not cutting interest rates in a social media post, underscoring questions about whether the president will seek to fire the Fed chief after threatening such action last week.
