Gold prices briefly broke above $3,500 per ounce to an all-time high on Tuesday, after US President Donald Trump criticised Federal Reserve Chair Jerome Powell, rattling investors and increasing demand for the safe-haven asset.
Spot gold was up about 1% at $3,457.12 an ounce by 1025 GMT, after earlier rising as far as $3,500.05. US gold futures gained 1.3% to $3,469.50.
“The latest leg of the rally was triggered by President Donald Trump’s public attack on Federal Reserve Chairman Jerome Powell,” said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.
“As political uncertainty and monetary policy concerns persist, gold is likely to remain well supported.
Key technical support levels are now seen at $3,450 and $3,400, while the next psychological target on the upside is $3,600 per ounce,“ Zumpfe said.
Trump’s increasingly vocal attacks on Powell for not cutting interest rates saw Wall Street share indexes fall around 2.4% on Monday and the dollar hit three-year lows.
A weaker US currency makes dollar-priced bullion less expensive for buyers overseas.
“It is also interesting that normally when equities hit the skids the way the US markets did yesterday, gold would come down under distressed liquidation.
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This time that has not happened,“ said StoneX analyst Rhona O’Connell.
Prices of gold, traditionally seen as a safe-haven asset amid economic and geopolitical uncertainty, have risen by nearly a third so far this year.
Traders will look to speeches by several Fed officials later this week, hoping for insights into future monetary policy amid the concerns about the central bank’s independence. Spot silver was steady at $32.68 an ounce, platinum gained 1% to $971.40, and palladium jumped 1.8% to $944.27.
American Dollar Exchange Rate