Gold Hits Record, Stocks Fall as Trump Slams Fed Chief

Gold prices soared to a new record on Tuesday, while global stock markets stumbled and the US dollar steadied, as former US President Donald Trump's sharp criticism of Federal Reserve Chairman Jerome Powell stoked fears over the central bank’s independence.

The price of gold rose above $3,457 an ounce as investors sought safe-haven assets in the face of mounting uncertainty. Trump’s latest attack on Powell — calling him a “major loser” and demanding pre-emptive interest rate cuts — came via social media, reigniting worries that he may attempt to oust the Fed chief if re-elected.

These remarks followed earlier criticism in which Trump said Powell’s “termination cannot come fast enough,” after the Fed warned that sweeping US tariffs could trigger renewed inflation.

The political pressure has unsettled global markets. On Monday, Wall Street’s major indices each dropped by around 2.5 percent, as traders sold off US assets amid concerns about policy stability.

“The intensity of Trump’s latest comments has significantly amplified the ‘sell America’ trend,” said one analyst, highlighting investor anxiety about a possible challenge to the Fed's autonomy.

The dollar, though steady on Tuesday, remained under pressure following the sharp sell-off the day before. Meanwhile, Asian markets were mixed: Hong Kong, Sydney, and Jakarta posted losses, while Shanghai and Seoul edged higher.

Experts warn that any move to remove Powell could cause severe market volatility. “Such action could prompt a dramatic exit from US assets and undermine confidence in the global financial system,” said a strategist.

As political tensions rise, investors are bracing for further instability, especially if the central bank's long-standing independence comes under threat — a prospect that could reshape global financial dynamics.