April 22, 2025 — Gold prices have surged to an unprecedented high, reaching $3,500.05 per ounce, as investors seek refuge amid escalating political tensions and economic uncertainty. The rally is fueled by concerns over the Federal Reserve’s independence, a weakening U.S. dollar, and increased demand from central banks.
The surge in gold prices is largely attributed to President Donald Trump’s recent criticisms of Federal Reserve Chair Jerome Powell. Trump’s public attacks, including labeling Powell a “major loser” for not cutting interest rates, have raised alarms about the Fed’s autonomy and contributed to market volatility.
The U.S. dollar has also weakened, with the dollar index dropping to its lowest point since 2022. A weaker dollar makes gold more attractive to investors using other currencies, further boosting demand.
Central banks, particularly in China, have increased their gold reserves, contributing to the metal’s upward trajectory. China’s central bank added gold to its reserves for the fifth consecutive month in March, reflecting a strategic move to diversify away from the U.S. dollar. Reuters
Analysts suggest that if current trends continue, gold could reach $3,700 per ounce by the end of the year. Goldman Sachs has already raised its year-end forecast, citing strong central bank demand and investor interest in safe-haven assets.
As global markets grapple with uncertainty, gold’s status as a safe-haven asset is reinforced, reflecting broader concerns over economic stability and monetary policy directions.
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