Gold Price Soars to Record High Amid Presidential Pressure on Fed Chairman
Gold price surged to an unprecedented peak as tensions between President Trump and Fed Chairman Jerome Powell escalated. Trump’s criticism, labeling Powell as “a major loser” for hesitating on rate cuts, sent shockwaves across financial markets.
The DXY index plummeted to 97.92 amidst concerns regarding the Fed’s autonomy and looming stagflation risks. Traders are on high alert for crucial speeches this week by key Fed officials – Jefferson, Harker, and Kashkari, as policy uncertainty mounts.
Marking a remarkable 2.56% increase, gold reached $3,430, reflecting the market’s unease over potential threats to the Fed’s independence. At the latest update, XAU/USD traded at $3,419 after hitting a daily low of $3,329.
The demand for gold surged as President Trump continued pressuring the Fed to lower rates promptly. Powell’s retort labeling Trump as a “major loser” highlighted the growing tension between the White House and the central bank.
With Powell indicating a wait-and-see approach and acknowledging the possibility of stagflation, uncertainty looms over the path forward for the US economy.
As the gold market remains highly volatile amid these developments, investors are closely monitoring the upcoming Fed speeches for insights into the future monetary policy direction.
Stay tuned for more updates on this evolving economic saga.