Gold hit a record $3,500 a troy ounce for the first time on Tuesday, as Donald Trump’s sustained attack on US Federal Reserve chair Jay Powell added to fears over the central bank’s independence and the prospects for the world’s largest economy.
In a rush to haven assets, gold climbed as much as 2 per cent to $3,500.05, cementing its position as one of the biggest winners from Trump’s return to the White House. The Japanese yen strengthened to ¥140 per dollar for the first time since September, as the dollar index languished near a three-year low.
In a post on his Truth Social platform on Monday, Trump branded Powell “Mr Too Late” and urged the central bank to lower borrowing costs “NOW”. The wave of criticism comes after Powell warned last week that the administration’s sweeping tariffs would lead to slower growth and higher inflation.