Gold prices surged to fresh record highs on Tuesday, propelled by escalating U.S.–China tariff frictions, President Trump’s threats to upend Federal Reserve independence, and a sharply weaker U.S. dollar.
Price Snapshot (as of 00:27 ET / 04:27 GMT)
Spot Gold: +1.7% to $3,482.76 per ounce
June Gold Futures: +1.9% to $3,491.20 per ounce
Gold has now notched four consecutive sessions of record highs, adding over 3% on Monday alone.
Key Drivers of the Rally
Fed Independence Concerns
White House adviser Kevin Hassett confirmed Trump’s team is exploring the removal of Fed Chair Jerome Powell, raising alarm over monetary policy credibility.
Powell’s recent stance against near?term rate cuts—citing tariff?driven inflation risks—has fueled political backlash.
Tariff?Driven Economic Uncertainty
U.S. levies on China at 145% (with a 125% Chinese retaliation) have intensified fears of a global slowdown, bolstering demand for safe?haven assets.
Dollar Weakness
The U.S. Dollar Index plunged to a three?year low on Monday, reducing the opportunity cost of holding non?yielding bullion.
Persistent Inflation Worries
Ongoing price pressures worldwide, coupled with strong central bank gold purchases, underpin the metal’s appeal as an inflation hedge.
Market Context
Consecutive Record Highs: Gold’s run reflects a rare convergence of geopolitical risk, Fed skepticism, and trade?war angst.
Safe?Haven Flows: Investors fleeing volatile equities and bonds have funneled capital into physical and paper gold markets.
Real?Time Commodity Data
To monitor up?to?the?minute gold and other commodity prices, access the? Commodities APIfrom Financial Modeling Prep.This API delivers current and historical pricing for metals, energy, and agricultural commodities.
As trade tensions and political uncertainty persist, gold’s historic rally underscores its role as a barometer of global risk—one that looks set to test new highs until clarity returns to monetary and trade policies.
