Gold Hits New All-Time High Above $3,400 Amid US-China Tensions and Fed Uncertainty

At the start of the new trading week, global markets witnessed a historic surge in gold prices. Concerns over an escalating trade war between the US and China, along with growing doubts over the independence of the US Federal Reserve, have pushed gold above the $3,400 mark, setting a new all-time high. The sharp decline in the US dollar and increased demand for safe-haven assets like gold have been the primary drivers behind this rally.

Gold Buyers Return Strong After Holiday Weekend

Following a brief correction last Friday due to profit-taking ahead of the Easter weekend, gold buyers returned to the market in full force on Monday. The precious metal resumed its upward momentum, breaking past the $3,400 threshold amid renewed demand from investors seeking shelter from rising economic and geopolitical risks.

Escalating US-China Trade War Fuels Safe-Haven Demand

Tensions between the US and China flared up over the weekend. A Boeing jet, previously designated for a Chinese airline, was returned to its production facility in the US after a retaliatory move by China. This incident followed President Trump’s directive to investigate potential new tariffs on critical mineral imports from China — a move framed as a national security concern due to America’s reliance on such imports.

Threats to Fed Independence Shake Market Confidence

The US dollar continued its downward spiral amid fears of political interference in the Federal Reserve. White House economic advisor Kevin Hassett confirmed that President Trump and his team are actively exploring options to remove Fed Chair Jerome Powell — a move that could seriously undermine the central bank’s independence and shake investor confidence in US monetary policy.

Flight to Safe-Haven Assets Pushes Gold Higher

As uncertainty grows, investors are increasingly turning to safe-haven assets. Gold has once again emerged as a preferred hedge against market volatility. With limited US economic data scheduled for release this week, the gold market is expected to remain heavily influenced by geopolitical developments, trade headlines from the Trump administration, and remarks from Fed officials.

Conclusion

With geopolitical tensions rising and the US dollar weakening, gold has cemented its role as a reliable safe-haven asset. While trading activity may remain thin due to the Easter Monday holiday, investors will be closely monitoring tariff announcements and Fed-related news for further direction in the precious metals market.