Gold price surges to new record highs as concerns rise over the U.S. central bank’s independence. President Trump recently threatened to remove Federal Reserve Chair Jerome Powell, which led to a rush of investments into Gold as a safe asset.
Key Highlights
Investments in Gold ETFs are now at their strongest level since September 2023.
Gold prices reached over $3,440/oz during early trading today.
More and more investors are concerned about whether the Federal Reserve can operate independently.
COMEX Gold inventories have dropped by nearly 2 million ounces since early April.
Gold has risen more than 30% this year, outperforming other commodities.
Why is Gold Price Rising So Quickly?
Gold prices have risen sharply due to political uncertainty. President Trump recently mentioned that he may remove Jerome Powell, the head of the Federal Reserve. This has made investors nervous about the future decisions of the central bank.
In uncertain times, investors often turn to Gold because it is seen as a “safe haven.” Gold holds its value well, and as a result, prices surged past $3,440/oz in recent trades.
Additionally, investors expect the Federal Reserve might soon cut interest rates, which would make Gold even more appealing.
What’s Driving Gold Higher?
Multiple reasons are driving the recent increase in Gold prices:
- Falling COMEX Inventories: The amount of Gold stored in COMEX has dropped by nearly 2 million ounces since April.
- Gold ETF Investments: People are investing in Gold-backed ETFs at their highest rate in over a year.
- No Tariffs on Gold: Gold has been exempt from new trade tariffs, making it more accessible for investors around the world.
Furthermore, the price difference between local and international Gold markets has changed, which has affected buying and selling in New York.
What Experts Are Saying
ING’s experts, Ewa Manthey and Warren Patterson, believe that the Gold price record high signals that investors are becoming more anxious. They are seeking safety as they worry about political pressure on the Federal Reserve.
Gold remains a reliable asset when there is uncertainty in the market, and that is why its price has risen so quickly.
Conclusion: What’s Next for Gold?
Gold has reached new heights due to concerns about the Federal Reserve and global markets. As inventories continue to fall and more investors buy into Gold ETFs, the price could continue to rise if uncertainty persists.
For expert market updates and Gold trading tips, visit Daily Gold Signal.
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FAQs
1. Why is Gold hitting a record high right now?
Gold prices are climbing due to political uncertainty and concerns about the U.S. Federal Reserve's independence. Many investors are buying Gold as a safe asset during unstable times.
2. How much has Gold increased in 2025 so far?
Gold has gained over 30% this year, making it the top-performing commodity in the market.
3. What is driving investor demand for Gold?
Key reasons include worries about interest rate policies, falling COMEX Gold inventories, and strong demand for Gold ETFs.
4. What are Gold ETFs, and why are they important?
Gold ETFs (Exchange-Traded Funds) allow investors to buy shares that are backed by physical Gold. These funds are seeing strong inflows, now at their highest level since September 2023.
5. What did President Trump say that affected Gold prices?
President Trump recently said he might remove Federal Reserve Chair Jerome Powell, which created fears about political interference in monetary policy, pushing more investors toward Gold.
6. Are COMEX Gold inventories rising or falling?
They are falling. COMEX inventories have dropped by nearly 2 million ounces since early April, which supports the rising Gold price.
7. Is Gold affected by current trade tariffs?
No, Gold has been excluded from the latest trade tariffs, making it more attractive for international investors.
