Gold prices have surged to a fresh all-time high as tensions between US President Donald Trump and Federal Reserve Chair Jerome Powell continue to escalate. The precious metal has gained over 2.56% and reached $3,430, with XAU/USD trading at $3,419.
Trump’s Attack on Powell
US President Donald Trump has called Fed Chair Jerome Powell a “major loser” and said he is always too late to reduce borrowing costs. This has put pressure on Powell and the Federal Reserve, with many analysts questioning their independence.
- Trump’s comments have led to a surge in demand for bullion, with investors seeking safe-haven assets amid growing uncertainty about the Fed’s policies.
- Gold prices have risen significantly since Trump’s comments, with the precious metal now trading at a record high.
The DXY Plunges to 97.92
The US Dollar Index (DXY) has fallen to three-year lows of 97.92, weighing on the Greenback. This decline is attributed to the tensions between Trump and Powell, as well as controversial trade policies.
| Category | Value |
| US 10-year Treasury yield | 4.373% |
| US 10-year Treasury Inflation-Protected Securities yields | 2.14% |
Fed Speakers Set to Deliver Remarks
Vice-Chair Philip Jefferson, Philadelphia Fed Patrick Harker, and Minneapolis Neel Kashkari are set to deliver remarks on Tuesday, providing insight into the Fed’s policies and future rate cuts.
- These speakers will offer a glimpse into the Fed’s stance on inflation and interest rates, with many expecting the central bank to take a more hawkish stance.
- The comments from these speakers will have a significant impact on the markets, with investors eagerly awaiting their remarks.
The XAU/USD Technical Outlook
The Relative Strength Index (RSI) has turned overbought, indicating that the precious metal could be set for a pullback. However, a breach of the latest peak suggests that bulls could reach $3,450 in the near term.
“We believe that the uptrend in Gold prices remains in play, with the precious metal poised to challenge the $3,500 level in the coming months.”
— Citi analysts
Support and Resistance Levels
If XAU/USD tumbles below $3,400, the first support would be the April 17 high of $3,357, followed by $3,300. Conversely, a breach of the latest peak could see the precious metal reach $3,450. The XAU/USD price is subject to significant volatility, with investors needing to stay vigilant and adapt to changing market conditions.
Market Outlook
The market outlook for gold is positive, with many expecting the precious metal to continue its uptrend. However, investors need to be aware of the risks associated with the XAU/USD price, including the potential for a pullback.
- The XAU/USD price is subject to significant volatility, with investors needing to stay vigilant and adapt to changing market conditions.
- Market participants should be aware of the potential for a pullback in the XAU/USD price, with investors needing to be prepared for any eventuality.
Key Takeaways
* Gold prices have surged to a fresh all-time high amid tensions between Trump and Powell. * The US Dollar Index (DXY) has fallen to three-year lows of 97.92. * Fed speakers will deliver remarks on Tuesday, providing insight into the Fed’s policies and future rate cuts. * The XAU/USD technical outlook is positive, with bulls poised to challenge the $3,500 level in the coming months. * Investors should be aware of the potential for a pullback in the XAU/USD price, with investors needing to be prepared for any eventuality.
*
A rare economic phenomenon where inflation and economic stagnation occur simultaneously. *
The Federal Reserve’s dual objectives of maximum employment and price stability. *
Financial assets that provide a safe-haven during times of economic uncertainty.
news is a contributor at GoldGage. We are committed to providing well-researched, accurate, and valuable content to our readers.
