From Yahoo Finance: 2025-04-22 12:23:00

Gold has soared above $3,500 an ounce, setting a new record high. Analysts predict it could reach $4,000 soon after breaking the $3,000 mark only weeks ago. The US dollar and government debt have seen a significant drop in favor of gold as a safe haven amid market turbulence.

The International Monetary Fund warns that Trump’s tariffs have caused a “major negative shock” to the global economy, leading to lowered growth forecasts for the US, UK, and worldwide. Despite this, most major European markets closed slightly up on Tuesday, with US markets recovering from previous losses.

Traders remain anxious after Trump’s harsh criticism of Federal Reserve chair Jerome Powell, causing the dollar to fall and then partially recover. The ongoing comments and threats from Trump have raised concerns about the Fed’s independence and implications for inflation, impacting the dollar, US Treasuries, and Wall Street.

The pound remained relatively stable on Tuesday after reaching a seven-month high earlier in the day. Analysts warn that the ongoing clashes between Trump and Powell reflect broader concerns about fiscal and monetary policy, leading to a significant erosion of confidence in the market.

Read more: Gold hits $3,500 for first time as US dollar sinks to three-year low