Gold prices surge to $3,500 as Larry Summers warns of U.S. market crisis

From Yahoo Finance: 2025-05-18 10:27:00

Former Treasury Secretary Larry Summers warned of a U.S. financial crisis akin to the U.K. meltdown in 2022, citing similarities to a ‘Liz Truss moment’. Gold hit $3,500 per ounce amid economic instability fears. Summers noted U.S. signs mirroring struggling emerging markets, urging caution.

Economic volatility persists as the dollar index weakened, boosting gold’s appeal. President Trump’s 145% tariff on Chinese goods sparked market unease, deepening fears of a prolonged trade war. Summers estimated the new tariff policy could cost $30 trillion, impacting American families significantly.

Trump’s criticism of Fed Chair Jerome Powell added to market anxiety. He called Powell a “major loser” and “Mr. Too Late” for not cutting interest rates sooner. The U.S. financial system shows concerning patterns, with stocks, bonds, and gold all declining, signaling potential economic turmoil ahead.

Read more: Gold Hits $3,500 As Larry Summers Says U.S. Market Is ‘On A Path’ To Crisis Like UK’s 2022 Meltdown