Gold Hits $3,500 as Trump’s Attacks on Powell Unnerve Markets

Gold hit a record $3,500 per ounce for the first time early Tuesday as President Donald Trump’s renewed attacks on Federal Reserve Chair Jerome Powell unnerved markets and sent investors into safe-haven assets.

Gold futures, which are currently trading at $3,470 per ounce, have closed at record highs more than 20 times this year as investors have been rattled by Trump’s unpredictable trade policies. Trump’s attacks on Powell have been viewed as threatening the Fed’s independence, a linchpin of the global economy.

At the $3,500 level, gold has already surpassed 12-month targets set by many Wall Street banks, according to a Reuters collation of projections. UBS has a $3,500 price target for gold, but has noted that Chinese buying could boost the precious metal’s price. China this year allowed its top insurers to start buying gold.

Adding to the buying in gold is the weakening U.S. dollar. Gold is priced in dollars, which means that a falling greenback buoys the precious metal. The U.S. dollar index, which measures the performance of the dollar against a basket of foreign currencies, was at 98.38 early Tuesday, down from 99.38 at the end of last week.