Gold price explores past $3,400 as Trump-Powell clash sparks Fed independence fears

• Gold hits fresh all-time high as Trump attacks Powell, calling him “a major loser” for delaying rate cuts.

• DXY plunges to 97.92 as Fed independence is questioned and stagflation risks remain in focus.

• Traders brace for key Fed speeches this week from Jefferson, Harker, and Kashkari amid growing policy uncertainty.

Gold price begins the week on a higher note, gaining over 2.56% and refreshing a previous record high as the precious metal hits $3,430 on uncertainty about comments that threat to curtail the Federal Reserve’s (Fed) independence. At the time of writing,  XAU/USD trades at $3,419 after hitting a daily low of $3,329.

Demand for bullion has increased as United States (US) President Donald Trump continues to exert pressure on the Fed. Fed Chair Jerome Powell called him a “major loser” and said he is always too late to reduce borrowing costs.

Last week, Powell said the US central bank is in wait-and-see mode and even flagged the chance of a stagflationary scenario, acknowledging, “We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension.”

Growing tensions between Trump and Powell, along with controversial trade policies, weighed on the Greenback, which, according to the US Dollar Index (DXY), has fallen to three-year lows of 97.92.

Data-wise, the US economic docket is absent, though it would gather traction mainly supported by Fed speakers. Vice-Chair Philip Jefferson, Philadelphia Fed Patrick Harker, and Minneapolis Neel Kashkari are all set to deliver remarks on Tuesday.

Daily digest market movers: Gold price soars to record high amid high US yields

• The US 10-year Treasury yield rises four basis points to 4.373% yet fails to cap Bullion prices.

• US real yields followed suit, climbing three and a half bps to 2.14%, as shown by the US 10-year Treasury Inflation-Protected Securities yields

• In rates markets, money market traders have priced in 94.5 basis points of Fed rate cuts by the end of 2025, with the first cut expected in July.

• Data-wise, this week the US economic docket will be packed by a flurry of Fed speakers, S&P Global Flash PMIs, Durable Goods Orders and the University of Michigan Consumer Sentiment final reading.

XAU/USD technical outlook: Gold price poised to challenge $3,450 in the near term

The uptrend in Gold prices remains in play, even with the chance of testing the $3,500  level touted by Citi to be reached in the next three months. The Relative Strength Index (RSI) turned overbought, an indication that the precious metal could be set for a pullback, but a breach of the latest peak suggests that bulls could reach $3,450 in the near term.

Conversely, if XAU/USD tumbles below $3,400, the first support would be the April 17 high of $3,357, followed by $3,300.