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Gold price surged to a new all-time high of $3,500, marking a gain of over 10% for April.
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US President Trump took aim at Fed Chairman Powell on social media, labeling him a 'loser'.
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Market sentiment remains shaky amid earnings season uncertainty and political pressure on the Federal Reserve.
Gold price (XAU/USD) continues its historic rally, reaching a new record high of $3,500 during early Asian trading on Tuesday. However, as the US trading session approaches, momentum has eased slightly, with prices retreating to around $3,450 amid profit-taking near the key psychological level.
Global markets are gradually returning to normal trading patterns following the low-volume Easter period, with Good Friday and Easter Monday bank holidays dampening activity.
This week's surge in gold is largely driven by growing concerns over the Federal Reserve's independence. Mounting political pressure is coming from US President Donald Trump, who has criticized Fed Chairman Jerome Powell for maintaining high interest rates. Trump accused Powell of only cutting rates under President Biden and is reportedly exploring ways to replace him with a candidate who would move swiftly to slash rates.
Daily Market Movers Digest: Rising Safe-Haven Demand Boosts Gold
- Gold continues to shine as the go-to safe-haven asset amid heightened market turmoil, geopolitical tensions, and renewed concerns over the independence of the US Federal Reserve. The precious metal surged to an all-time high of $3,500 on Tuesday before retreating slightly, now trading just below key resistance levels.
- According to Bloomberg, US President Trump’s latest demand for the Federal Reserve to cut interest rates immediately has rattled investors, with many seeing it as a direct threat to the central bank’s independence. The resulting political pressure drove the US Dollar Index (DXY) to its lowest point since 2022.
- Jefferies analysts emphasized that gold may now be "the only true safe-haven asset left," citing growing skepticism about US assets, including Treasuries. With Treasury yields under pressure due to fears of tariffs, a trade war with China, and worsening US fiscal conditions, gold is increasingly seen as a more reliable store of value, Reuters reports.
- Ahead of the quarterly earnings season, Jefferies named Endeavour Mining Plc as a preferred pick among senior gold producers and Dundee Precious Metals Inc. among non-seniors, according to Bloomberg.
Technical Outlook: Gold May See Further Upside if $3,447 Holds
Gold’s recent rally appears overextended but remains fundamentally supported.. After testing intraday resistance at $3,494 and peaking at $3,500, prices are consolidating, forming a double resistance zone. A daily close above R1 at $3,447 could pave the way for further gains and potentially new all-time highs in April.
On the downside, the daily Pivot Point sits at $3,395 but lacks nearby technical support. More solid footing lies at S1 around $3,360, aligning with the April 17 high. If this level breaks, further support can be found at S2 ($3,296) and the April 11 high near $3,245.
With political drama in Washington and global uncertainties mounting, safe-haven flows into gold may only grow stronger in the sessions ahead.
