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TAKEAWAYS KEY
- Gold hit a record $3,500 per ounce for the first time early Tuesday as President Donald Trump's renewed attacks on Federal Reserve Chair Jerome Powell unnerved markets and sent investors into safe-haven assets.
- Trump’s attacks on Powell have been viewed by investors as threatening the Fed's independence.
- Gold futures are currently trading at $3.470 per ounce.
Gold hit a record $3,500 per ounce for the first time early Tuesday as President Donald Trump’s renewed attacks on Federal Reserve Chair Jerome Powell unnerved markets and sent investors into safe-haven assets.
Gold futures have reached record highs 20 times in the past year, as investors have been frightened by Trump’s unpredictable policies on trade. Trump’s attacks on Powell were viewed as threatening Fed independence, a key pillar of the global economy.
According to a Reuters analysis of projections, the gold price has already surpassed the 12-month targets set forth by many Wall Street banks. UBS has a $3,500 price target for gold, but has noted that Chinese buying could boost the precious metal's price. China’s top insurers were allowed to buy gold this year.
The weakening dollar in the United States is a factor that adds to the gold buying. Gold is priced using dollars, which means a falling greenback will help to boost the precious metal. The U.S. dollar index, which measures the performance of the dollar against a basket of foreign currencies, was at 98.38 early Tuesday, down from 99.38 at the end of last week.
