Gold prices have reached new heights as investor demand for safe-haven assets rises. This surge is driven by a weakening dollar, ongoing trade war concerns, and criticism of the Federal Reserve by U.S. President Trump. The dollar has fallen to its lowest point since the end of 2023, while gold prices have soared above $3,435 per ounce.
President Trump is reportedly exploring the possibility of removing Jerome Powell from his position as Federal Reserve Chairman and has repeatedly called for interest rate cuts. In response, Austan Goolsbee, President of the Federal Reserve Bank of Chicago, has publicly opposed any actions that might undermine the central bank's independence.
Christopher Wong, a strategist at OCBC Bank, warns that firing Powell could politicize U.S. monetary policy in a way that unsettles the markets. If the Fed's credibility is questioned, confidence in the dollar might weaken further, accelerating the flow of funds into safe-haven assets like gold.
Spot gold rose by 0.4% during Asian trading, hitting a record high of $3,436.01 per ounce. Meanwhile, silver and platinum saw slight gains, while palladium experienced a decline.
