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Gold hit a 3 $ 3,500 record for the first time and the dollar fell on Tuesday after Donald Trump’s steady attack on US Federal Reserve Jay Powell added fears for prospects for the world’s largest economy.
Gold climbed 2.2 percent and Japanese Jen has been strengthened over $ 140 for the first time since September while investors turned to housing assets.
In a post on his social platform of truth on Monday, Trump called Powell “Mr. Very Late” and asked the Central Bank to reduce the “now” borrowing costs. Trump’s criticism wave comes after Powell warned last week that comprehensive administration tariffs would lead to slower growth and higher inflation.
The tension between the US president and the Central Bank marks a new challenge for investors that are already accumulating with the consequences of the aggressive policy of the commercial administration.
“Titles regarding Trump’s pressure on the federal reserve, questions about his independence and his ability to turn on Powell – despite the outcome – have added uncertainty to an already fried market with uncertainty,” noted analysts in RBC.
Trump’s Broadside on Monday sent S&P 500 below 2.4 percent and nasdaq heavy technology below 2.6 percent on Monday. The future of the Stoxx Europe 600 follow -up reduced 0.3 percent on Tuesday.
The dollar fell 0.2 percent against a basket of main currencies on Tuesday, leaving it down about 10 percent this year.
In bond markets, yields in the highest treasures. The 10-year yield increased by 0.02 percentage points to 4.43 percent, while the 30-year yield increased 0.02 percentage points to 4.93 percent.
The president has often criticized Powell for not lowering interest rates rapidly, while the Fed chairman said he would never be affected by political pressure.
Investors and economists said a Trump’s attempt to remove Powell before his mandate ended in May 2026 would risk causing damage to the US economy.
“Reductiono Reduction of Fed’s independence would add headaches to an inflation perspective that is already undergoing increased pressure from tariffs and somewhat raised inflation expectations,” said Michael Feroli, head of US economist JPMORGAN Chase.
The gold, in which some investors rely on as an anti -inflation protection, has been one of the biggest winners from the return of Trump to the White House. It is adjacent to 33 percent this year.
“There seems to be some flows in gold,” said Mitul Kotecha, the head of Forex and the developing market strategy for Asia in Barclays, adding that a large group of investors were buying rods.
