The sharp decline of the US dollar propelled gold prices to soar past 3,400 yuan, while Trump furiously criticized Powell, demanding an immediate interest rate cut.

On Monday (April 21) during the New York session, spot gold prices accelerated their upward trend, breaking through the $3,400 mark around 19:40 Beijing time, setting a new historical record.

Subsequently, spot gold prices surged to $3,430.26 per ounce, with intraday gains exceeding $90, approaching 3%. Meanwhile, the US dollar index fell to 97.91 during the day, its lowest level since March 2022, prompting investors to flock to the safe-haven asset of gold.

Spot Gold Price Intraday Chart

Media analysis pointed out that US tariff policies have triggered trade tensions, shaking investor confidence in the US economy and financial markets. Additionally, US President Trump's pressure on Fed Chairman Powell has severely impacted the US dollar, driving up the prices of dollar-denominated precious metals.

David Meger, director of metal trading at High Ridge Futures, stated, "As tariff tensions continue to escalate, we will continue to see gold prices rise due to safe-haven demand. There may be occasional pullbacks and profit-taking, but we still believe the underlying trend is sideways consolidation with an upward bias."

Previously, Powell made it clear that he would not take emergency market rescue measures due to market volatility. Last Thursday, Trump posted on social media that Powell could be removed immediately and demanded that the Fed cut interest rates immediately.

On Friday, Trump reiterated at the White House that Powell should lower interest rates. That day, Kevin Hassett, director of the National Economic Council, told the media when asked about the possibility of firing Powell, "The President and his team will continue to study this issue."

Shortly before the release of the article, Trump posted, "Many people have called for a 'preventive' interest rate cut because energy costs have fallen significantly, food prices (including the egg disaster caused by Biden) have dropped sharply, and most other categories are also trending downward, effectively eliminating inflation."

"With these cost trends moving so favorably downward, as I predicted, inflation is almost impossible. But an economic slowdown could occur unless 'Mr. Too Late'—a man who has repeatedly failed—lowers interest rates now."

Trump added, "Europe has cut interest rates seven times, and Powell is always late, except during election periods when he lowered rates to help Sleepy Joe Biden (and later Kamala Harris) get elected. Did it work?"