Trump’s "Golden Rule" Fuel Gold Rally, Trump’s Shadow Looms Large Over Gold Bull Market

Following a 25% surge in international gold prices in 2025, the rally has gained fresh momentum: U.S. President Donald Trump's threat to fire Federal Reserve Chair Jerome Powell has sparked concerns over financial stability, while Trump openly endorsed holding gold, stating, "HE WHO HAS THE GOLD MAKES THE RULES."

On the morning of April 21, international gold prices rose nearly 1%, currently trading at 3,381.42 per ounce. Driven by risk−averse sentiment, gold prices breached the 3,380 mark for the first time in history and continued to set new all-time highs.

In the early hours of April 21, Trump posted on his social media platform Truth Social, saying, “THE GOLDEN RULE OF NEGOTIATING AND SUCCESS: HE WHO HAS THE GOLD MAKES THE RULES.” This statement is widely seen as the direct catalyst for the day’s sustained upward movement in gold prices.

Additionally, last week, Trump repeatedly criticized Fed Chair Powell for being too slow to cut interest rates and urged Powell’s resignation. The White House also confirmed that they are exploring the possibility of dismissing the Federal Reserve Chair.

Under the U.S. political system, the Federal Reserve’s policy decisions are supposed to be independent of the President. Trump’s plan to fire Powell has drawn backlash from economists and politicians alike, including U.S. Treasury Secretary Scott Bessent.

Bessent opposed the direct dismissal of Powell, arguing it would destabilize financial markets, with the potential costs being too high. French Finance Minister Eric Lombard also warned that if Trump follows through, it could undermine the credibility of the dollar and destabilize the U.S. economy.

On April 21, the U.S. Dollar Index fell below the 99 level, hitting its lowest point in nearly three years. The weakening dollar and rising uncertainty have further fueled gold’s upward trajectory.

Saxo Bank strategists noted that escalating tensions have already put markets on edge, and growing concerns over Trump’s potential intervention in the Fed are adding another layer of uncertainty.

Just days ago, Citibank raised its three-month gold price target to 3,500 per ounce. Current gold prices have already exceeded the year−end 2025 targets set by many Wall Street institutions, such as JPMorgan’s 3,000 and Deutsche Bank’s 3,350.