Gold (GOLD) is gaining another 1.6% today on a wave of uncertainty in the markets, which have begun to seriously price in the risk of a change in the Federal Reserve’s leadership. Today, the precious metal’s prices reached USD 3,500 per ounce, a historical level never seen before.
Gold has had its best start to the year in at least 10 years. Source: XTB
Early trading has also brought us broad-market weakness in the US dollar, although it has regained some ground in the last few minutes.
On Friday, Donald Trump said that he could fire FED Chairman Powell if he really wanted to, and the chairman of the National Economic Council, Hassett, stated that Trump intends to do so.
Trump has also been trying to ‘pressure’ Powell for some time now, pointing out that there is currently ‘no inflation’ in the US and that interest rates should have fallen a long time ago. The market is reacting to this turn of events, perceiving the situation as another manifestation of the president’s ‘unpredictability’. The independence of the central bank is, however, guaranteed by law, which is why removing Powell from office still seems like an unrealistic scenario. It is worth recalling that Trump must wait until May 15, 2026 for Powell’s regulated departure.
Gold is a powerful beneficiary of this condition, not only as an ‘anti-dollar’ asset but also as a ‘safe haven’ in the scenario of escalating geopolitical tensions or political changes. Today, the metal is reaching new, historical highs around USD 3,500.
As we mentioned earlier, gold has had a great start to the year. Looking at the momentum measured by the RSI indicator, it currently stands at over 80 points, which is the highest indication since the end of 2024. The upward trend remains stable, although looking at the scale of increases, downward corrections cannot be ruled out. Source: xStation
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