From Financial Modeling Prep: 2025-04-22 03:20:00

Gold prices surged to record highs due to U.S.-China tariff tensions, Trump’s threats to Fed independence, and a weaker dollar. Spot Gold rose 1.7% to $3,482.76 per ounce, with June Gold Futures up 1.9% to $3,491.20. Gold has hit four straight record highs, gaining over 3% on Monday.

Key drivers include concerns over Fed independence. White House adviser Kevin Hassett confirmed exploration of Fed Chair Powell’s removal, causing alarm over monetary policy credibility. Powell’s resistance to rate cuts due to tariff-driven inflation risks has sparked political backlash.

Gold’s rally is also fueled by tariff-driven economic uncertainty, dollar weakness, and persistent inflation worries. Global price pressures and central bank gold purchases support gold’s appeal as an inflation hedge. The metal’s rise reflects geopolitical risk, Fed skepticism, and trade-war concerns, attracting safe-haven flows from volatile equities and bonds.

As trade tensions and uncertainty continue, gold’s rally highlights its role as a global risk indicator. Investors are closely monitoring gold prices as they navigate through economic and political challenges, with gold likely to test new highs until clarity returns to monetary and trade policies.



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