April 22, 2025 – DailyForex.pk
Gold prices skyrocketed to an all-time high on Monday, smashing through the $3,400 level for the first time in history. The rally came amid escalating political tensions and a sharp rise in safe-haven demand, as President Donald Trump renewed his attacks on Federal Reserve Chairman Jerome Powell.
The June gold futures contract surged by $92.20, or 2.8%, to settle at $3,434 per troy ounce, marking an increase of over $400 in just nine trading sessions.
💱 Breakdown of Gold’s Rally: Buyer Demand and Dollar Weakness
Gold’s meteoric rise was driven by:
- Increased buying pressure — responsible for approximately two-thirds of the move
- U.S. dollar weakness — the Dollar Index (DXY) slid 1.02% to 98.165
Investors poured into safe-haven assets, including gold and the Swiss franc, while U.S. Treasury yields rose on fears of deepening market instability.
Meanwhile, major U.S. stock indices dropped over 3%, highlighting investor anxiety over growing political interference in monetary policy.
🗣️ Trump’s Verbal Assault on Powell Fuels Investor Panic
The latest gold rally follows President Trump’s renewed criticism of Powell, where he demanded immediate interest rate cuts, warning that the U.S. economy could “slow down” without urgent action.
In a Truth Social post, Trump declared:
“There can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW.”
He also claimed he had the authority to remove Powell “real fast”, intensifying uncertainty around Federal Reserve independence.
🏛️ Powell Pushes Back: Fed Seeks Clarity Before Policy Shift
In contrast, Fed Chair Jerome Powell has maintained a cautious tone. Speaking earlier this month, Powell stated:
“We are well-positioned to wait for greater clarity before considering any adjustments to our policy stance.”
He also warned about the uncertain economic consequences of Trump’s tariff policies, suggesting that premature rate cuts could risk fueling inflation.
📊 Outlook: Gold Strength Reinforced by Political Risk and Inflation Fear
With rising political pressure, global economic uncertainty, and a weaker dollar, gold’s role as the ultimate safe-haven has been strongly reaffirmed.
Unless there is a significant shift in rhetoric from either the Federal Reserve or the White House, analysts believe gold could continue climbing, especially if additional economic data supports slower growth or elevated inflation risks.
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