Gold traded above $3,390 an ounce in mid-European trading on Monday, April 21, the opening session of the week, amid a European market absence for Easter. Gold hit a new high early in the week, benefiting from continued market uncertainty and a decline in the US dollar index as investors assessed the repercussions and risks of Trump’s interference in the independence of the US Federal Reserve.
Trump indicated in his remarks to reporters on Friday that Powell should cut interest rates as inflation declines, while some reports indicated that the US president and his team are continuing to explore the possibility of dismissing Federal Reserve Chairman Powell. This has heightened market concerns about the central bank’s independence and the president’s ability to control its decisions, potentially dealing a fresh blow to US assets.
All this speculation regarding the Federal Reserve and Powell, along with the ongoing uncertainty caused by the continued impact, has caused a loss of confidence among traders, leading to a rise in safe-haven currencies and assets, putting pressure on the US dollar index. China, for its part, warned countries this morning that might cooperate with the United States at the expense of its interests, and that some reports indicated that Trump plans to use trade negotiations to limit countries’ dealings with Beijing.
The US dollar index is trading this morning at 98.00, down more than 1.10% from the opening of today’s session, its lowest level since March 2022. This is affected by the questioning of the credibility of the US Federal Reserve, which has led to a loss of confidence in the dollar and support for safe havens.
Gold is trading at midday trading on Monday at $3,392 per ounce, up about 1.95%, while silver is up about 0.79% at $32.85 per ounce.
Platinum is trading at $974, up about 0.73%, while palladium is down about 0.18% at $960.