Gold prices surged past $3,400 on Monday, reaching a new record high as President Donald Trump’s threats against the Federal Reserve’s independence and his tariffs undermine investor confidence in the U.S. economy. Gold futures climbed approximately 2.69% to $3,418 per ounce by 8:20 a.m. ET on Monday. Investors are flocking to the precious metal as the dollar hits a three-year low. Since the start of the year, gold has risen about 29%, and nearly 8% since Trump announced sweeping tariffs on April 2. Trump stated last Thursday that Fed Chair Jerome Powell’s “termination cannot come fast enough,” following Powell’s warning that the president’s tariffs will likely increase inflation in the near term. Trump is exploring whether he can dismiss Powell, according to White House economic advisor Kevin Hassett. The president has once again urged Powell to cut interest rates, questioning the central bank chief’s judgment. Gold has performed exceptionally well this year as confidence in the U.S. wanes and central banks increase their purchases of the precious metal. Citi forecasts gold prices could rally to $3,500 over the next three months due to strong investment demand outpacing mining supply.
— new from CNBC
