Gold prices surged to an all-time high on Monday, crossing the $3,385-per-ounce threshold in early Asian trading. The spike comes amid a sharp drop in the U.S. dollar, triggered by President Donald Trump’s proposed overhaul of the Federal Reserve. Spot gold rose 1.4% to $3,374.93 per ounce by 03:40 ET, shortly after touching a peak of $3,385.27. June gold futures mirrored the trend, jumping 1.8% to $3,388.20.
Investor anxiety over the Fed’s future, combined with ongoing geopolitical risks and robust demand from central banks, has fueled the metal’s meteoric rise. As inflation persists globally, gold continues to attract buyers looking for long-term value preservation.
Trump’s Fed Plan Fuels Market Jitters
Concerns over the independence of the Federal Reserve intensified following reports that President Trump is exploring the possibility of removing Fed Chair Jerome Powell. White House economic advisor Kevin Hassett confirmed Friday that legal options are being reviewed.
This development rattled currency markets. The U.S. dollar index fell to its lowest level in three years, making dollar-denominated gold cheaper for international buyers and accelerating its rally.
Key impacts of Fed uncertainty on gold:
- Undermines market confidence in U.S. monetary policy
- Weakens dollar value, lifting gold’s global appeal
- Encourages risk-off sentiment among investors
Traders are now watching closely for any policy shifts or political interventions that could destabilize monetary governance, which historically drives safe-haven flows toward gold.
Geopolitical Risks Bolster Bullion Appeal
Beyond domestic monetary concerns, geopolitical tensions continue to bolster gold’s position. Over the weekend, Russian President Vladimir Putin declared a one-day ceasefire in Ukraine to honor Orthodox Easter. However, within hours of its expiration, missile and drone attacks resumed, reigniting fears of prolonged conflict.
Both Kyiv and Moscow blamed each other for violating the truce, highlighting the fragility of diplomatic efforts. The renewed violence added to global uncertainty and amplified demand for safe assets like gold.
Meanwhile, silver futures climbed 1% to $32.773 per ounce, while platinum remained flat at $978.00. Copper prices also rose modestly, buoyed by a weaker dollar but capped by trade friction between the U.S. and China.
Commodity Highlights:
- Silver Futures: +1% to $32.773/oz
- Platinum Futures: Flat at $978.00/oz
- Copper (LME): +0.3% to $9,231.00/ton
- Copper (May Futures): +0.8% to $4.4733/lb
With inflation concerns lingering, central banks stockpiling reserves, and global politics in flux, gold’s bullish momentum appears far from over.