Gold Hits Record High as Trump Pressures Powell

Gold Spot Price Surpasses $3,400 per Ounce
Funds Flock to Gold as a Safe-Haven Amid Weak Dollar

The price of gold has surpassed $3,400 per ounce, setting a new all-time high. This surge is attributed to the trade war and controversy over U.S. President Donald Trump’s interference with the independence of the Federal Reserve (Fed), which have dampened investor sentiment toward risk assets and driven demand for safe-haven assets.

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According to the New York Mercantile Exchange (COMEX) on the 21st (local time), June gold futures settled at $3,425.30 per ounce, up 2.9% from the previous trading day, marking a new record high. The spot price of gold also rose 3.03% from the previous session, reaching $3,428.39 per ounce as of 3:45 p.m. Eastern Time. Gold prices surpassed $3,300 per ounce on the 16th and broke through the $3,400 mark again in less than a week. Gold holdings in exchange-traded funds (ETFs) linked to gold have increased for 12 consecutive weeks, marking the longest upward trend since 2022.

The reason is that President Trump’s aggressive actions have raised concerns about the U.S. medium- and long-term economic outlook, and controversy over the Fed’s independence has further weakened investment sentiment toward U.S. assets such as the dollar, while buying interest has surged in gold, a safe-haven asset. On this day, President Trump continued to pressure Fed Chair Jerome Powell to cut interest rates, causing the value of the dollar to tumble to its lowest level in three years.

The Wall Street Journal (WSJ) analyzed, "As anxious investors seek refuge from battered stock and bond markets, gold prices hit a record high on the 21st," adding, "Gold prices often rise when the dollar is weak. Since gold is priced in dollars, it becomes cheaper for those holding stronger foreign currencies."

In addition, central banks around the world have joined the gold buying spree, further fueling the rise in gold prices. According to CNBC, the price of gold has jumped about 30% so far this year, and has risen nearly 8% since President Trump’s announcement of reciprocal tariffs.

The financial investment industry expects gold prices to climb even higher in the future. Goldman Sachs predicts that gold could reach $4,000 per ounce by the middle of next year, while Citibank expects gold prices to rise to $3,500 per ounce over the next three months as investment demand outpaces mining supply.

Kenny Hu, a Citi analyst, stated in a recent report, "There is a high likelihood that concerns over tariffs affecting U.S. and global economic growth, combined with strong demand from central banks and other institutions, will drive prices higher."