Gold Price Surges Past $3,500: Trump’s Fed Attack Sparks Investor Panic
The ** gold price surge ** reached a dramatic milestone Monday morning, breaking through $3,500 per ounce for the first time in history. The record-setting move comes on the heels of former President Donald Trump’s scathing remarks against the Federal Reserve, sparking a wave of investor fear across global markets.
Why Gold Is Soaring Now
Gold has long served as a safe haven during times of uncertainty. And right now, there’s plenty of that. Trump’s pointed accusations that the Fed is “deliberately sabotaging the economy” with its rate policies ignited fears of political pressure undermining monetary independence.
Just hours after his statements, commodity markets lit up. Traders rushed into gold, driving the price up more than 3% in a single session. Silver and other precious metals also rallied, but gold stole the show.
Trump’s Latest Clash With the Fed
During a campaign stop over the weekend, Trump accused Federal Reserve Chair Jerome Powell of “collusion” and “economic terrorism,” saying the Fed’s recent rate decisions are “a disaster designed to hurt America.”
His words prompted swift backlash from economists and Wall Street analysts, who worry this latest feud could damage U.S. financial credibility. Still, for many investors, the key takeaway was uncertainty—and that usually means one thing: buy gold.
How Investors Are Reacting
From hedge funds to retail traders, portfolios are rapidly shifting toward safer assets. Gold ETFs have seen the largest inflows since the banking scare of 2023. Bond yields, on the other hand, have dipped as demand for U.S. Treasuries cools.
“It’s not just about inflation anymore,” said Melissa Garroway, chief investment strategist at Alpine Trust. “This is about political risk. And in that game, gold wins.”
The Dow dropped 180 points on Monday morning, while the Nasdaq fell by 0.9%. Bitcoin initially rose on the news but then fell back as traders prioritized physical assets over digital speculation.
The Bigger Picture: What’s Next?
The gold price surge is the latest symptom of growing unease about U.S. economic leadership. The Federal Reserve has been under increasing pressure from both political parties—but Trump’s remarks are a sharp escalation.
What happens next depends largely on Powell’s response. If the Fed signals rate cuts to calm markets, we may see a temporary dip in gold. But if the standoff escalates, $3,500 may just be the beginning.
Analysts at JPMorgan now see gold hitting $3,800 within the next quarter if volatility continues. Meanwhile, investors are advised to stay diversified and monitor further political developments closely.
What This Means for You
If you’re an investor, this moment underscores why gold price surges should be on your radar. Political pressure on the Fed adds new risk factors beyond traditional inflation or recession fears.
Whether you hold physical bullion, ETFs, or futures, now may be a good time to review your exposure. For readers worried about their personal finances, check out our Life section for practical strategies.
For more details, see the https://www.cnbc.com/2025/04/22/gold-tops-3500-an-ounce-as-trump-attack-on-fed-spooks-investors.html“>original CNBC report.
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