Gold just smashed through $3,500 an ounce—an all-time high—before pulling back slightly, as investors scramble for safety amid a fresh round of political fireworks in Washington. At the center of the storm: Donald Trump's escalating attacks on Fed Chair Jerome Powell, including hints he might fire him. That threat to central bank independence has spooked global markets, pulling cash out of stocks, bonds, and the dollar, and funneling it straight into gold (up 32% year-to-date). “Mr. Too Late,” Trump said of Powell on social media, demanding immediate rate cuts. Traders are now pricing in not just policy uncertainty—but a full-blown loss of confidence in the U.S. financial system.
The gold rush is global. Central banks have been quietly stockpiling bullion since early 2024 to reduce reliance on the U.S. dollar—and that buying has gone parabolic in recent weeks. Chinese trading volumes have surged. ETFs like SPDR Gold Shares (GLD, Financial) are attracting fresh inflows. Miners are getting a lift too: Zijin Mining jumped over 6% in Hong Kong on Tuesday and is up more than 25% this year. Goldman Sachs sees the rally continuing, projecting gold to hit $4,000 by mid-2026. Jefferies calls it “the last safe haven left.” And analysts at Kallanish warn the ‘Trump Trade' has flipped into a ‘Sell America' trade—gold is no longer just a hedge; it's a statement.
Still, the speed of this breakout has pushed gold's 14-day RSI above 78—suggesting a near-term breather could be coming. But that doesn't change the trajectory. With Treasuries wobbling and the dollar under pressure, investors are looking beyond traditional safe zones. And right now, gold's telling us something deeper: the world's trust in U.S. assets isn't what it used to be.
