A one kilogram gold bar at Gold Investments Ltd. bullion dealers arranged in London, U.K., on April 3, 2025.
Chris Ratcliffe | Bloomberg | Getty Images
Gold prices broke $3,400 on Monday, hitting a new record as President Donald Trump’s threats against the Federal Reserve’s independence and his tariffs shake investor confidence in the U.S. economy.
Gold futures jumped 3.15% to $3,433.10 per ounce by 9:56 a.m. ET on Monday, with investors buying the precious metal as the dollar hit a three-year low. Gold has jumped about 30% since the start of the year and more than 8% since Trump unveiled his sweeping tariffs on April 2.
The president ramped up pressure on Fed Chair Jerome Powell on Monday, calling him a “major loser” and demanding that the central bank lower interest rates now.
Trump said last Thursday that Powell’s “termination cannot come fast enough,” after the U.S. central bank chief warned that the president’s tariffs will likely increase inflation in the near term. Trump is looking into whether he can fire Powell, White House economic advisor Kevin Hassett said Friday.
Gold has been on a tear this year as confidence in the U.S. falls and central banks buy up the precious metal. Citi sees gold prices rallying to $3,500 over the next three months as investment demand outstrips supply from mining.
“We estimate that tariff-related US and global growth concerns are likely to continue to combine with strong central bank and other institutional demand,” analysts led by Kenny Hu told clients in a recent note.
