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President Donald Trump at the annual Easter Egg Roll on the South Lawn of the White House in Washington, D.C. on April 21, 2025
- Gold prices climbed to another record high on Monday as trade tensions with China simmered and President Trump renewed his criticism of Fed Chair Jerome Powell.
- Gold has risen about 30% this year as investors, rattled by Trump’s unpredictable trade policies, have fled risk assets to ride out tariff uncertainty in traditional safe havens.
- Many fund managers expect gold, which has already enjoyed a historic run this year, to continue to benefit from uncertainty in the stock and bond markets.
Gold prices hit another record high on Monday as tensions with China simmered and President Trump continued his attacks on Federal Reserve Chair Jerome Powell.
Gold futures surged to a record high of more than $3,400 an ounce early Monday, and were recently trading 3% higher at $3,430 an ounce. Monday’s advance put gold’s price up nearly 30% since the start of the year.
Worries about President Trump’s unpredictable tariff policies have lifted economic uncertainty to its highest level in years, sending investors flocking to safe-haven assets like gold. Gold ETFs took in $21 billion in the first quarter of the year, their second-largest quarterly inflows on record.
Gold, which has already closed at an all-time high more than 20 times this year, is expected to continue benefiting from chaos in the stock and bond markets. More than 40% of fund managers recently surveyed by Bank of America said they expect gold to be the year’s best-performing asset.
Market participants were de-risking on Monday after China said it would retaliate against any country that reaches a trade deal with the U.S. that hurts China’s interests. The White House, which paused sweeping tariffs earlier this month but kept a 145% levy on Chinese goods, has said it is negotiating deals with dozens of countries.
Trump amplified anxiety on Wall Street when, shortly after markets opened, he renewed his attacks on Fed Chair Jerome Powell. Trump on Monday called for “preemptive” interest cuts to prevent the economy from slowing.
Powell, who Trump appointed Fed Chair in 2018, drew the president’s ire last week when he said tariffs would likely complicate the central bank’s efforts to tame inflation and promote a healthy labor market. Trump responded by saying Powell’s “termination can’t come fast enough.” Top White House economic advisor Kevin Hassett told reporters Friday the administration was looking into whether it could oust the Fed leader.
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