Gold hits a record $3,500 per ounce
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- Gold prices have hit a record — over $3,500 per ounce — as investors seek haven assets.
- Trump's intensified criticisms of Federal Reserve Chair Powell are fueling concerns about Fed independence.
- Investors have doubled down on the "Sell America" trade on Trump's policy shifts.
Gold prices hit a fresh record again on Tuesday, breaching the $3,500 per ounce level as investors continued fleeing to haven assets amid high uncertainty.
The precious metal's dizzying rally was spurred most recently by President Donald Trump's intensifying criticisms of Federal Reserve Chair Jerome Powell, which sent US markets down on Monday.
The development amplified the "Sell America" trade that has been hammering US assets from stocks to bonds to the dollar.
"This comes as Trump ratchets up pressure on Powell to ease monetary policy, raising concerns about Fed independence," wrote ING commodities strategists in a Tuesday note, adding that exchange-traded fund holdings in gold are at their highest levels since September 2023.
The spot gold price hit a record high of $3,500.05 per ounce on Tuesday and was at $3,473 per ounce at 3:35 a.m. ET.
Spot gold prices are up over 30% this year so far, making it the best-performing commodity.
Investors are also concerned about the economy following a report from the Federal Reserve Bank of Philadelphia on Thursday, which showed a plunge in manufacturing business confidence.
"This convergence of political tension and weakening economic data has pushed investors away from risk assets and into gold," wrote Naeem Aslam, the chief investment officer of London-based Zaye Capital Markets, on Tuesday. "The drop in the US dollar and equity markets is reinforcing the bullish case for gold."
Gold's skyrocketing streak this year has prompted some analysts to upgrade their price forecasts for the yellow metal.
Earlier this month, Goldman Sachs raised its gold price forecast by $400, to $3,700 an ounce by the end of this year.