Gold price climbs past $3,400 as the US Dollar weakens sharply. The rise comes after a public conflict between President Donald Trump and Federal Reserve Chairman Jerome Powell. Investors are now turning to gold for safety.
Key Takeaways for Gold Price
Talks of global trade deals may slow gold’s rise.
Gold trades around $3,425, reaching a new all-time high.
The US Dollar drops after Trump criticizes Fed Chairman Powell.
Political tension raises doubts about the Fed’s independence.
Gold price gains support as a safe-haven asset during uncertain times.
Market Background: Political Drama Hurts the US Dollar
Gold is rising because of problems in the US government. President Trump is not happy with how Jerome Powell is handling interest rates. Trump believes Powell should cut rates to support the economy and lower inflation.
Last Friday, Trump said, “If I want him out of there, he’ll be out real fast.” His team, including advisor Kevin Hassett, confirmed they’re looking into ways to remove Powell. These comments shook financial markets.
As a result, the US Dollar Index (DXY) fell to 98.00, its lowest level in three years. A weak dollar usually means gold becomes more attractive to investors, especially from outside the US.
This growing concern over politics is making investors question the Fed’s independence. Experts say if the Fed is influenced by politics, the value of the dollar could drop further, which would help push gold prices even higher.
Gold Price Strong Technical Performance
Gold’s price has gone up fast, moving above $3,400 on Monday. It broke through a long-term Rising Channel pattern, which means momentum is strong.
Here’s what the technical data shows:
- All major moving averages point upward.
- The RSI (Relative Strength Index) is around 75.00, showing strong buying power.
- Previous support lies at $3,245.
- The next major resistance is at $3,500.
This suggests gold could keep climbing unless outside factors slow it down.
Expert Views: US Dollar Weakness Boosts Gold Price
Scotiabank analysts say political interference in Fed decisions could make the US Dollar weaker in the long run. That’s why many investors are moving their money into gold, which is considered a safer investment during unstable times.
With these changes in the market, more people are now using gold trading strategies to protect their wealth from inflation and currency issues.
Stay informed with expert signals at Daily Gold Signal.
Will Trade Deals Lower Gold’s Demand?
Despite the current rally, some experts think gold’s price could drop if the US reaches trade agreements with major countries.
President Trump recently said trade talks are going well:
- He had positive meetings with Mexico and Japan.
- He believes a deal with China is “100%” going to happen.
- US Commerce Secretary Howard Lutnick also sounded confident.
If trade tensions ease, the demand for gold may go down. That’s because people buy gold when the world feels risky. If trade gets smoother, investors may choose other options instead.
Conclusion: Gold Leads as the Dollar Struggles
Gold price has reached record highs as investors respond to the falling US Dollar and growing political tension. Even though gold may face short-term pressure from trade talks, it still looks strong for now.
Until there’s more stability in US politics and clear signs of global recovery, gold will likely stay in high demand.
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