Gold Price News: Gold Hits $3,500 Mark for First Time

Gold prices powered up to another all-time high on Tuesday, after the US dollar fell further against other currencies on Monday amid signs of tensions between the White House and the US Federal Reserve over interest rates.

Prices rose as high as $3,501 an ounce on Tuesday – a fresh all-time high – and up from around $3,430 an ounce in late deals on Monday.

However, Wednesday started with a sharp pull-back for gold prices, which fell back below $3,300 an ounce in early trades.

Trump pressures Fed to cut rates

The financial markets were spooked on Monday after US President Donald Trump took to social media to issue verbal attacks against US Fed chair Jerome Powell in an apparent bid to pressure the central bank to cut interest rates immediately.

The US dollar fell to a fresh 3.5-year low against the euro on Monday before edging slightly higher again on Tuesday.

America’s historical strong economy and reliability have for a long time positioned the US dollar as one of the safest assets, but recent policy changes, including stop-start tariff threats, have triggered uncertainty over America’s long-term prospects, prompting a shift away from equites and the US dollar in favour of safer assets like gold.

Serving to highlight those concerns, the International Monetary Fund on Tuesday downgraded its forecast for America’s economic growth this year by the largest amount among advanced economies, to 1.8% from 2.7% in January. The IMF also downgraded its global growth forecast for 2025 to 2.8% from 3.3% previously, as a result of the uncertainty over US tariffs.

Upcoming data

Looking ahead, Wednesday will bring monthly Euro Area manufacturing figures, followed by the UK S&P Global manufacturing PMI figures, both for April. Then attention will turn to the US on Thursday for the durable goods orders data for March, as well as the weekly initial jobless claims figures, for a health-check on the US economy and labour market.