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Gold has reached a record of $ 3,500 per Troy for the first time and the dollar fell on Tuesday, while Donald Trump’s sustained attack against the president of the American federal reserve Jay Powell added to the fears of the prospects of the greatest economy in the world.
In a rush to assets, gold climbed by 2.2% to reach $ 3,500.10, which was its position of one of the biggest winners of Trump’s return to the White House. The Japanese yen has strengthened above ¥ 140 per dollar for the first time since September while the dollar index spent almost a three-year hollow.
In an article on his social platform Truth on Monday, Trump marked Powell “Mr. Too late “and urged the central bank to reduce” now “borrowing costs. Trump’s wave of criticism comes after Powell warned last week that the radical prices of the administration would lead to slower growth and higher inflation.
The tension between the American president and the central bank marks a new challenge for investors already struggling with the benefits of the aggressive commercial policy of the administration.
“Trump’s big titles on pressure on the federal reserve, questions about its independence and its ability to dismiss Powell – whatever the result – have added uncertainty to a market already rinse with uncertainty,” noted RBC analysts.
Trump’s Trump’s open wide sent the S&P 500 down 2.4% and the Nasdaq, heavy in technology, closed 2.6% less. The Stoxx Europe 600 fell 0.7% and the FTSE 100 was little changed at the start of negotiation on Tuesday.
The dollar dropped 0.2% compared to a basket of large currencies, which left it down almost 10% this year.
In the bond markets, the yields on treasury bills bordered above. The 10 -year yield increased by 0.02 percentage points to 4.43%, while the 30 -year yield increased by 0.02 percentage points to 4.93%.
The president has frequently criticized Powell In order not to reduce interest rates fairly quickly, while the president of the Fed said that he would never be influenced by political pressure.
THE Nourished kept the prices pending this year after lowering them three times in a row in 2024, including a large half-point movement in September. The next meeting of the central bank is in May.
Investors and economists said that Trump’s attempt to withdraw Powell before the end of his mandate in May 2026 would risk inflicting damage to the US economy.
“Any reduction in FED’s independence would add risks to the increase in inflation prospects that are already subject to prices upward pressures and expectations of somewhat high inflation,” said Michael Feroli, an American chief economist at Jpmorgan Chase.
Gold, on which some investors have as a coverage against inflation, jumped 33% this year. According to Standard Charterd, investors paid at least $ 19 billion in golden back exchange funds during the first quarter.
“There seem to be gold flows,” said Mitul Kotecha, Forex manager and Macro Strategy on the emerging market for Asia in Barclays, adding that a wide range of investors bought ingots.
