The price of gold surged on Monday, April 21, surpassing $3,400, setting a new record. On that day, US President Trump took to social media to once again urge Federal Reserve Chair Jerome Powell to take immediate action to prevent a slowdown in the US economy.
As of Monday morning at 9:56 Eastern Time, gold futures jumped by 3.15% to $3,433.10 per ounce. Since the beginning of this year, gold has risen by about 30%, and since Trump announced his comprehensive tariff policy on April 2, gold has risen by over 8%.
On Monday, President Trump once again intensified pressure on Federal Reserve Chair Powell, demanding the central bank to cut interest rates immediately and not delay any further. Last week, Powell warned that the President’s tariffs could lead to increased inflation in the short term.
At 9:41 am on Monday, Trump wrote on social media, “With energy costs substantially down, food prices (including eggs) much lower, and most other goods trending lower, inflation is almost nonexistent.”
“As these costs trend down and show good behavior, there is virtually no chance for inflation, as I predicted,” he warned that if the Federal Reserve “doesn’t lower interest rates, and do it quickly, we may see an economic slowdown.”
Last week, Powell indicated that the US Federal Reserve was in a wait-and-see mode. White House economic advisor Kevin Hassett stated on Friday, April 18, that Trump is considering whether to dismiss Powell.
Gold has been shining bright so far this year. In March, gold prices surpassed the $3,000 per ounce mark for the first time, and since then, the price of gold has continued to climb. Despite the Fed pausing interest rate hikes, inflation decreasing, and the stock market starting to stabilize after recent volatility, this has not prevented gold prices from rising this month. Last week, gold broke the $3,300 per ounce mark.
This week, gold continues its upward trend. The yield on the 10-year US Treasury bond rose by 4 basis points to 4.373%, but this has not been able to limit the rise in gold and silver prices. With gold in high demand, Citigroup believes that gold prices will continue to climb to $3,500 in the next three months.
On Sunday, Trump posted on social media, stating that the negotiating and success rule with gold is, “whoever has the gold makes the rules.”