Threats to US Fed independence and escalating trade tensions fuel record gold rally

Gold surged 1.4% on Tuesday, hitting new all-time highs. The rally was driven by investor concerns over US President Donald Trump's mounting pressure on Federal Reserve Chairman Jerome Powell, which dampened risk appetite and boosted demand for safe-haven assets.

The day before, Trump reiterated his call for an immediate rate cut, expressing worries about a potential economic slowdown. He also criticized Powell's cautious stance, which favors maintaining current monetary policy until the impact of tariffs on inflation is better understood.

Tensions continued to escalate as Beijing accused Washington of misusing duties and warned other nations not to enter into trade agreements that could undermine China's interests.

Given the economic uncertainty, gold, a traditional safe-haven asset, has gained strength, topping $3,499 in morning trading.

Reuters reports that Fed officials will speak later this week, providing insight into the future of interest rates amid growing concerns about the central bank's independence.