Gold prices skyrocketed to a new record in Asian trading on Monday, bolstered by escalating fears regarding U.S. monetary policy independence along with heightened geopolitical tensions in Eastern Europe.

Spot Gold Hits New Record

• Spot Gold soared 1.4% to $3,374.93/oz, touching a fresh all-time high of $3,385.27/oz in early trading.

• Gold Futures (June) rose 1.8% to $3,388.20/oz, reflecting bullish sentiment among investors.

Concerns About Fed Independence

The recent discussions about overhauling the Federal Reserve and efforts to replace Chair Jerome Powell have rattled markets.

• Advisers to Trump have indicated that the administration is considering Powell’s removal.

• This uncertainty has driven the U.S. Dollar Index to a three-year low, which enhances the appeal of gold for foreign investors.

A weaker dollar typically boosts gold demand by lowering the costs for buyers in other currencies.

Geopolitical Tensions Resurface

Increased safe-haven buying has also occurred due to renewed military actions in Ukraine after a brief ceasefire.

• Both Kyiv and Moscow have accused each other of violating the temporary truce, increasing the conflict’s intensity.

• This escalation adds further fuel to gold’s upward momentum.

Central Bank Demand Sustains Growth

Central bank purchases of gold remain robust in 2025, supported by ongoing inflation that keeps real interest rates low, creating favorable conditions for gold.

Overview of Precious Metals

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As uncertainties persist in the financial landscape and geopolitical tensions rise, gold may continue to see strong demand, particularly if Fed leadership dynamics continue to create instability and inflation proves persistent.