Gold Hits Record as Dollar Sinks and Trade War Escalates

​Gold just blew past $3,390 an ounce, setting yet another all-time high as global markets reel from a weakening dollar, deepening trade war tensions, and political chaos in Washington.

The rally comes as President Trump ramps up attacks on the Federal Reserve, reportedly exploring ways to fire Chair Jerome Powell, and continues to pressure the Fed for lower rates. The result? A drop in the U.S. dollar, fresh doubts about central bank independence, and a full-blown flight to safety.

Strategists warn that Trump’s move to politicize the Fed could severely damage confidence in the dollar. “It undermines central bank independence,” said Christopher Wong of OCBC. “That erosion of trust is driving money into gold.”

The metal has already been on a tear throughout 2025, fueled by global demand from central banks and investors spooked by Trump’s trade policies. Bullion-backed ETFs have seen 12 straight weeks of inflows, the longest streak since 2022, while central banks keep buying to shore up reserves.

Adding fuel to the fire, China warned countries against cutting trade deals with the U.S. at Beijing’s expense, and the IMF is expected to downgrade its global growth outlook later this week.

Big banks are taking notice. Goldman Sachs now sees gold hitting $4,000 by mid-2026, citing accelerating demand from both retail and institutional buyers.

Spot gold surged 2.1% to hit $3,396.08, with silver and other precious metals tagging along for the ride. Meanwhile, the Bloomberg Dollar Spot Index fell 0.9%, its sharpest drop since early 2024.

Bottom line: Between a crumbling dollar, a fragile Fed, and a spiraling trade war, gold is having a moment—and investors are betting the run is far from over.







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