Gold prices soared again Monday as rising U.S.-China tensions and political pressure on the Fed fueled market fears. The surge reinforced a growing trend. Gold becomes a safe haven when uncertainty rocks global markets.
By midday, gold futures had jumped over 3%, reaching $3,430 an ounce. Earlier, the price crossed $3,400 for the first time. The rally pushed gold prices nearly 30% higher since the start of the year. Analysts believe this climb is far from over. Gold becomes a safe haven as economic concerns keep stacking up.
This year, gold has closed at a new high more than 20 times. Bank of America recently surveyed fund managers. Over 40% said they expect gold to outperform all other assets in 2025. The trend reflects deep investor unease. Unstable markets and political battles are driving demand for reliable stores of value.
In fact, gold-backed ETFs saw $21 billion in inflows in just the first quarter. That figure marks their second-largest quarterly inflow ever. Meanwhile, investors are dumping risky assets. Instead, they’re seeking safety in precious metals. Gold becomes a safe haven for those avoiding stock and bond market volatility.
On Monday, China warned it would retaliate against trade deals that hurt its national interests. The U.S. had recently paused some tariffs. However, it kept a 145% tariff on Chinese goods. That move fueled tensions further. Washington continues negotiating separate trade deals with other countries.
Soon after markets opened, President Trump intensified Wall Street’s anxiety. He called for immediate interest rate cuts. Trump claimed these cuts were necessary to avoid a slowdown. His public attack came after Powell suggested tariffs may complicate the Fed’s policy goals.
Trump also reignited speculation about removing Powell. Last week, he said Powell’s firing “can’t come fast enough.” The comments followed Powell’s warning about inflation risks. Top economic advisor Kevin Hassett confirmed the administration is exploring Powell’s dismissal.
In summary, a volatile mix of trade disputes, political pressure, and inflation fears continues to dominate headlines. Investors are responding decisively. Gold becomes a safe haven amid the uncertainty gripping global financial markets.
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