Gold bars bearing marks indicating they were previously owned by alleged Fred Daibes were found in Sen. Robert Menendez's residence, according to an indictment announced by the U.S. Attorney's Office in Manhattan on Sept. 22, 2023. Daibes and two other New Jersey businessmen are also named in the indictment, along with Menendez's wife.
Washington D.C. – Investors flooded into gold on Tuesday, driving its price to a historic high of $3,500 per troy ounce, as financial markets reeled from escalating political tensions and deepening economic uncertainty.
The dramatic jump in gold prices reflects mounting fears over President Trump’s intensifying trade war and his open hostility toward Federal Reserve Chair Jerome H. Powell. Gold briefly touched $3,500.05 per ounce — the highest on record — before slipping slightly to $3,479.50, according to Refinitiv data.
The metal, prized as a safe haven during times of upheaval, has jumped more than 31% since the start of the year, fueled by investor anxiety over recession risks, a weakening dollar, and eroding faith in the independence of U.S. institutions.
“Gold has again moved to yet another record, with its safe-haven reputation shining bright,” analysts at RBC Capital Markets wrote. “With the uncertainty related to Fed independence, gold continues to benefit as a safe-haven, and one not tied to the U.S. dollar.”
Tuesday’s rally came after a punishing day on Wall Street. The Dow, S&P 500, and Nasdaq all slumped amid a broad sell-off, with investors shedding equities, dumping U.S. Treasury bonds, and reducing their exposure to the dollar. The yield on 10-year Treasuries — a key benchmark — rose as bond prices fell, reflecting ongoing skepticism about the direction of U.S. economic policy.
Driving much of the volatility is President Trump’s increasingly public feud with Fed Chair Powell. After Powell warned that the administration’s tariffs could stoke inflation and stall growth, Trump fired back, calling Powell a “loser” on social media and vowing to remove him from office. The threats have triggered fears that the central bank’s independence — a cornerstone of investor confidence — may be under siege.
“Rising demand for safe-haven assets amid declining confidence in the U.S. dollar and escalating geopolitical and economic risk” is propelling the rally, said Rania Gule, a senior analyst at XS.com. “This reflects ongoing recession fears in the U.S. economy and heightened political tensions.”
With no signs of easing in Trump’s trade confrontation or his attacks on the Fed, many analysts believe gold could climb even higher, as investors seek refuge from an increasingly volatile and unpredictable financial landscape.
