Gold prices soared to record highs on Tuesday, driven by strong safe-haven demand amid President Trump’s criticism of the Fed and rising trade tensions between the U.S. and China.

Current Price Overview

• Spot Gold: Up by 0.6% to $3,442.48/oz (09:15 ET)

• June Gold Futures: Up by 0.9% to $3,455.90/oz

• Intraday Peak: Briefly reached $4,500/oz

• Year-to-Date Performance: +30%, indicating the best-performing commodity of 2025

Threats to Fed Independence

• “Mr. Too Late” Comments: Trump accused Powell of being a “major loser” while demanding immediate rate cuts.

• Firing Speculation: White House adviser Kevin Hassett confirmed discussions are ongoing about Powell’s potential removal, boosting safe-haven asset flows.

• Market Reactions: Analysts at ING highlight that these developments have led to a significant flight to safe-haven assets.

Trade War Pressures

• Rising Tariffs: Current U.S. tariffs on China are as high as 145%, with retaliatory measures from Beijing reaching 125%.

• China’s Stance: Beijing has warned against any U.S. trade agreements that threaten their interests, indicating possible reciprocal actions.

• Dollar Weakness: The U.S. Dollar Index has fallen to a three-year low, enhancing gold’s appeal for international buyers.

ETF Trends and Inventory Movements

• ETF Holdings: Gold ETF holdings hit their highest dollar value since September 2023, fueled by rising prices.

• COMEX Inventory: Stocks have decreased by about 2 million oz since early April, resting under 43.1 million oz, as tariff exemptions and negative arbitrage encourage physical purchases.

Future Considerations for Gold Investors

• Key Data to Watch:

  • Fed Commentary: Any comments that could address Powell’s future with the Fed are crucial.

  • Trade Updates: Monitoring progress (or setbacks) in U.S.-China trade talks is essential.

  • Inflation Reports: Important CPI and PCE figures will help gauge trends in real interest rates.

• Technical Support and Resistance Levels: Watch for support near $3,300/oz and resistance at approximately $3,600/oz.

Real-Time Gold Price Tracking Tools

For live and historical gold pricing, alongside other commodity data, refer to the
Commodities API
from Entreprenerdly.com. This API offers essential real-time quotes, inventory data, and trend analyses to navigate the current safe-haven rally.