- Gold has hit a new record above $3,400 as weakening confidence in the U.S. drives demand for safe-haven assets.
- President Trump’s escalating attacks on Fed Chair Jerome Powell and threats to central bank independence risk further market instability and could push gold even higher.
Gold has broken above $3,400 for the first time, setting a new all-time high as investor confidence in the United States continues to decline.
Citi forecasts gold could reach $3,500 within the next three months. However, this projection might be underestimating Trump’s potential to further undermine confidence in the US.
On Monday, President Trump intensified pressure on Federal Reserve Chair Jerome Powell, calling him a “major loser” and demanding immediate interest rate cuts. Last week the President said, “Powell’s termination cannot come fast enough,”.
A move to dismiss Powell would likely trigger significant market volatility. Markets generally view Powell as a stabilizing figure, and history shows that a less independent central bank is less effective at keeping inflation under control.
I think it might be fair to wonder what a Federal Reserve Chairman Kid Rock would do for the price of gold.
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