Gold skyrockets as fears grow over Trump's influence on the Federal Reserve

On September 2, 2025, gold prices reached a significant milestone, surpassing $3,571.50 per ounce, as global investors reacted to ongoing concerns regarding the independence of the U.S. Federal Reserve. The rally in gold prices was fueled primarily by increasing market speculation regarding possible interest rate cuts by the Federal Reserve, with traders pricing in an 89.7 percent likelihood of a 25-basis-point cut in the upcoming meeting set for September 17. This financial environment, characterized by low-interest rates, tends to favor gold, a non-yielding asset that traditionally serves as a safe haven in times of economic uncertainty. Concerns about President Donald Trump's potential to influence or dismiss key figures in the Federal Reserve, such as Chairman Jerome Powell, have further contributed to mounting apprehension among investors, rattling faith in the U.S. dollar and steering more capital toward gold. Additionally, geopolitical tensions and trade concerns have accelerated a trend of divesting from U.S. Treasuries, thus channeling more investments into gold. The narrative surrounding the current U.S. administration's stance on financial policy and its implications for global markets continues to evolve, affecting overall economic confidence. Asian markets showed mixed results in the wake of this surge, emphasizing the broader implications of specific U.S. economic decisions on global financial health, as various international stock indices react to both local and external economic indicators.