April 22, 2025 – Gold prices held steady in Asian trading Tuesday following a record-breaking rally, fueled by rising U.S.-China trade tensions and uncertainty surrounding the Federal Reserve’s leadership.
Spot gold rose 0.2% to $3,431.05 per ounce as of 00:17 GMT, while June gold futures jumped 1.8% to $3,388.20. This follows Monday’s surge past $3,444 per ounce, marking the yellow metal’s third straight session of record highs.
Investors flocked to gold amid growing geopolitical risks, strong central bank buying, and stubborn inflation fears. Market jitters intensified after President Donald Trump proposed a potential overhaul of the Federal Reserve, including a possible dismissal of Chair Jerome Powell.
Trump renewed pressure on the Fed to cut interest rates, clashing with Powell’s recent stance to hold rates steady due to inflation and economic uncertainty tied to tariffs. The resulting fears over Fed independence and policy direction pushed the U.S. dollar to a three-year low.
