TL;DR
- Gold surpassed $3,500 per ounce after renewed criticism from Trump toward Jerome Powell, triggering political tension and shaking the markets.
- The dollar continues to fall, Wall Street indexes closed in the red, and investors sought refuge in assets like physical gold.
- Bitcoin climbed above $90,000, and the crypto market posted a broad rebound.
Gold surpassed $3,500 per ounce this Tuesday, marking a new all-time high driven by growing tension between President Donald Trump and Federal Reserve Chair Jerome Powell.
Trump’s post on Truth Social, where he called Powell “Mr. Too Late” and demanded an immediate rate cut, triggered a new wave of market instability. The reaction was swift: the dollar fell, stocks pulled back, and investors turned to traditional safe havens like gold.
Tension with the Central Bank
The clash between the Executive Branch and the Fed is once again casting doubt on the central bank’s independence, especially amid rising inflation caused by the administration’s new tariff policies. Trump renewed his public pressure on Powell just after the Fed chair warned about the economic risks of the White House’s trade measures. This confrontation is stirring the U.S. political scene and eroding confidence in the dollar.
On Wall Street, the main indexes dropped sharply. The S&P 500 lost 2.4% and the Nasdaq fell 2.6%. In Europe, the Stoxx 600 also closed lower, although with a milder decline. The dollar continues its downward trend and has lost nearly 10% so far this year. Against the yen, it weakened again, returning to levels not seen since last September.
Bitcoin and the Market Bounce Back
Amid this volatility, the crypto market has started to rebound. The total market capitalization reached $2.83 trillion after rising 2.3%, and trading volume approached $94 billion in the last session. Bitcoin (BTC), the industry’s flagship cryptocurrency, climbed back above $90,000 per unit. It posted a 3.18% daily increase, with trading volume surpassing $40 billion.
Everyone Runs for Shelter in Gold and Other Metals
The conflict between the President and the Fed, combined with fears of further political interference in monetary policy, is pushing investors toward gold. So far in 2025, its price has risen 33%, further fueled by capital inflows into funds backed by physical metal. With the next Fed meeting on the calendar, both political pressure and market expectations are rising in tandem.
