Gold prices surge past $3500 per ounce, marking a historic milestone.
Gold's Price Skyrockets
Hold on to your hats, gold bugs! The price of a June delivery gold futures contract on the Chicago Mercantile Exchange has soared to a whopping $3492.6 (+1.96%) as of 09:36 Moscow time, with prices peaking at an astounding $3509.9[1]. Meanwhile, spot prices have come within spitting distance of $3500. By 09:40 Moscow time, gold was trading at $3480.95 (+1.65%).
Why the sudden gold rush? Well, it all boils down to fears that U.S. President Donald Trump might give the ax to Federal Reserve Chair Jerome Powell, according to Bloomberg. This potential move has set off a mad dash for the safety of gold, triggering an exodus of funds from U.S. stocks, bonds, and the dollar[1].
"Gold's meteoric rise this year indicates that markets have lost faith in the U.S. like never before," says Kallanish Index Services analyst Li Lian Le[1].
This isn't the first time President Trump's antics have led to a plunge in the dollar. On April 21, the greenback fell to its lowest point in three years following Trump's criticism of Powell on social media[1]. Trump labeled Powell a "big failure" and demanded immediate interest rate cuts[1]. This perceived threat to the Fed's independence sent the dollar index DXY, which measures the U.S. currency against six major currencies, down to 97.923 on April 21, its lowest level since March 2022[1].
As of 10:04 Moscow time on April 22, the dollar was lurking around 81.25 rubles (+0.31%) on the international forex market[1]. The greenback had briefly dipped to 80.36 rubles. The official CB rate for April 22, as set by the Bank of Russia, stands at 80.76 rubles per dollar[1]. This is the first time the official rate has been at this level since summer 2023.
Since the beginning of the year, gold has seen a staggering 33% surge in value[1]. This bull run has been fueled by trade disputes that have rocked the markets. In fact, Goldman Sachs expects gold prices to continue climbing and reach $4000 per ounce by mid-2026[2][3][4].
So, if you've been thinking about diving into the world of gold, now might just be the perfect time. Just remember, as always, to do your homework and make informed decisions. And for all the latest news, make sure to follow our Telegram channel at @expert_mag!
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[1] Bloomberg, Gold Surges to Record High amid Concern Trump May Dismiss Powell[2] Goldman Sachs, Commodities Research: Gold -- Where We Are, Where We Go Further[3] CNBC, Goldman Sachs Predicts Gold Will Hit $4,000 an Ounce by Mid-2026[4] Fortune, Why Goldman Sachs Thinks Gold Prices Will Reach $4,000 an Ounce by Mid-2026
- Amidst the economic uncertainty brought by U.S. politics, some individuals might consider investing in personal-finance options like gold, as seen in the current surge in gold's price.
- In the technology-driven world of finance, analysts like Li Lian Le from Kallanish Index Services are monitoring the industry closely, expecting gold prices to further increase due to trade disputes and geopolitical events.
- As gold price reaches record highs, it might be an attractive option for those seeking to diversify their investment portfolio, especially in the tumultuous industry of finance.
