XAU/USD (GOLD) Surges 2%

Gold hits record $3,400 near as Trump threatens to fire Fed chair, Powell; US dollar sinks

Gold (GOLD) is up over 2% today, driven by market uncertainty and a weakening U.S. dollar, which took a sharp hit as investors began seriously pricing in the risk of a leadership change at the Federal Reserve after Donald Trump signalled firing Fed chair Powell as possible. Dollar index futures (USDIDX) are down more than 1.2%, while EUR/USD is gaining 0.85%, setting new local highs around 1.15.

• On Friday, Donald Trump stated that he could fire Fed Chair Jerome Powell if he really wanted to, while National Economic Council Director Kevin Hassett confirmed that Trump intends to do so. A weaker dollar has long been a goal of Trump’s administration, citing export competitiveness as a key advantage.
• Trump has also been openly pressuring Powell for some time, arguing that the U.S. is experiencing “virtually no inflation” and that interest rates should have been lowered long ago. Markets are reacting to this rhetoric as another sign of Trump’s unpredictability, which is seen as undermining the institutional and legal order in the United States, while also signaling a potential pivot toward a more dovish Federal Reserve policy. Powell’s current term ends in May 2026.

Gold is emerging as a major beneficiary of this shift—not only as an “anti-dollar” asset but also as a traditional safe haven in times of geopolitical tension or political upheaval that threatens fiat currencies. Today, the metal has reached a new all-time high near $3,400 per ounce. The mix of softening US macro readings, persisted trade war tensions (still no deal announced), geopolitical uncertainty and possible Fed ‘dovish put’ without the Powell support gold.  

Source: xStation5

Source: xStation5

The material on this page does not constitute financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other specific needs. All information provided, including opinions, market research, mathematical results and technical analyzes published on the Website or transmitted To you by other means, it is provided for information purposes only and should in no way be construed as an offer or solicitation for a transaction in any financial instrument, nor should the information provided be construed as advice of a legal or financial nature on which any investment decisions you make should be based exclusively To your level of understanding, investment objectives, financial situation, or other specific needs, any decision to act on the information published on the Website or sent to you by other means is entirely at your own risk if you In doubt or unsure about your understanding of a particular product, instrument, service or transaction, you should seek professional or legal advice before trading. Investing in CFDs carries a high level of risk, as they are leveraged products and have small movements Often the market can result in much larger movements in the value of your investment, and this can work against you or in your favor. Please ensure you fully understand the risks involved, taking into account investments objectives and level of experience, before trading and, if necessary, seek independent advice.