Gold Hits Record $3,500 After Trump Calls Fed Chair a "Major Loser"

Gold prices reached a new all-time high on Monday, briefly touching $3,500 per ounce before settling around $3,428. The surge came as investors grew increasingly uneasy about the direction of the U.S. economy following renewed criticism from former President Donald Trump toward the Federal Reserve.

Trump warned that the U.S. economy could slow down unless interest rates are cut immediately. He again targeted Fed Chair Jerome Powell, calling him a “major loser” for not acting quickly enough. That sparked a wave of selling in U.S. assets, hitting Wall Street, weakening the dollar, and pushing investors toward gold—often seen as a safe place during uncertain times.

“Gold is adjusting to some big shifts in the financial world. People are starting to lose trust in the dollar and U.S. bonds,” said independent analyst Ross Norman.

Gold Keeps Climbing as Central Banks Increase Buying

Gold has already climbed over $800 so far this year. After passing $3,300 just last week, it gained nearly $200 in a matter of days. Much of that momentum is being supported by strong demand from central banks around the world.

Adrian Ash, director of research at BullionVault, said that recent political drama is making gold even more attractive to governments. “Trump’s return to the spotlight is adding to gold’s appeal as a stable and reliable asset,” he explained.

According to the World Gold Council, central bank gold purchases jumped by 54% in the final quarter of 2024, reaching 333 tons, as Trump won re-election. China’s central bank added to its gold reserves for a fifth straight month in March, and is now planning to set up overseas storage facilities to help with international gold trade on the Shanghai Gold Exchange.

Experts Say Any Price Drop Would Be Short-Lived

Goldman Sachs recently raised its forecast, expecting gold to reach $3,700 by the end of 2025—and possibly up to $3,810 if central banks keep buying at the current pace. ANZ also bumped up its year-end prediction to $3,600.

While some analysts acknowledge that gold’s rally could take a short breather, they believe any dip would be limited. “It’s hard to see prices falling sharply,” said Norman. “There are plenty of new buyers ready to step in if prices slip.”

Julius Baer analyst Carsten Menke added that the only thing that could slow gold down significantly is if Trump changes his approach on trade or the Fed—something he believes is unlikely.

So far this year, gold has broken 28 records, with 16 of those coming in above $3,000 per ounce. Prices have climbed 31% since January, following a 27% gain in 2024. With markets still on edge, gold’s run shows no signs of stopping.

Also Read: Gold Prices Reach Record Highs as Trade Tensions Continue in April 2025