- Trump warns of economic slowdown unless Fed cuts rates
- Next psychological target on the upside is $3,600, analyst says
- Bullion has gained nearly 33% so far this year
April 22 (Reuters) - Gold prices briefly broke above $3,500 per ounce to an all-time high on Tuesday, after U.S. President Donald Trump criticised Federal Reserve Chair Jerome Powell, rattling investors and increasing demand for the safe-haven asset.
Spot gold was up 0.8% at $3,452.15 an ounce by 0909 GMT, after earlier rising as far as $3,500.05. U.S. gold futures gained 1.2% to $3,464.50.
"The latest leg of the rally was triggered by President Donald Trump’s public attack on Federal Reserve Chairman Jerome Powell," said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.
"As political uncertainty and monetary policy concerns persist, gold is likely to remain well supported. Key technical support levels are now seen at $3,450 and $3,400, while the next psychological target on the upside is $3,600 per ounce," Zumpfe said.
Trump's increasingly vocal attacks on Powell for not cutting interest rates saw Wall Street share indexes fall around 2.4% on Monday and the dollar hit three-year lows. A weaker U.S. currency makes dollar-priced bullion less expensive for buyers overseas.
"It is also interesting that normally when equities hit the skids the way the U.S. markets did yesterday, gold would come down under distressed liquidation. This time that has not happened," said StoneX analyst Rhona O'Connell.
Prices of gold, traditionally seen as a safe-haven asset amid economic and geopolitical uncertainty, have risen by nearly a third so far this year.
Traders will look to speeches by several Fed officials later this week, hoping for insights into future monetary policy amid the concerns about the central bank's independence.
Spot silver fell 0.9% to $32.41 an ounce.
Platinum gained 0.7% to $968.15, and palladium jumped 1.8% to $942.67.
Reporting by Rahul Paswan and Anjana Anil in Bengaluru; Editing by Kirsten Donovan
Source: Reuters