Gold's value reaches a record-breaking milestone, surpassing $3500 per ounce for the very first time.
Gold's price soared to record highs, causing a frenzy in financial markets, with fears about the future of US President Donald Trump's administration sending investors rushing to the safety of the precious metal. The cost of a June delivery gold futures contract climbed to $3492.6 (+1.96%) as of 09:36 Moscow time, and it wasn't long before prices peaked at $3509.9. By 09:40 Moscow time, gold was trading at $3480.95 (+1.65%).
The surge in gold prices was propelled by Trump's actions, as his attacks on Federal Reserve Chair Jerome Powell and threats to dismiss him caused an outflow of funds from U.S. stocks, bonds, and the dollar. The uncertainty about the Fed chair's future and Trump's demands for immediate rate cuts raised questions about the Fed's independence, causing the dollar to plummet to a three-year low.
But this isn't the first time Trump's policies have impacted the market. In April 2021, the dollar fell to a similar low in response to Trump's attacks on Powell on social media. At the time, the U.S. president dubbed Powell a "big failure" and demanded rate cuts – moves that were seen as a threat to the Fed's independence. As a result, the dollar index DXY, which measures the U.S. currency against six major currencies, dropped to 97.923 on April 21, its lowest since March 2022.
On the international forex market on April 22, the dollar was trading around 81 rubles. By 10:04 Moscow time, the dollar had reached 81.25 rubles (+0.31%). But the greenback had briefly dipped to 80.36 rubles. The official CB rate for April 22, set by the Bank of Russia, stood at 80.76 rubles per dollar. This rate hadn't been seen since summer 2023.
Gold has been on a tear this year, surging by a third since the beginning of 2025. Despite the increased demand, analysts are divided on where gold prices are headed. While some, like Goldman Sachs, predict prices could reach $4000 per ounce by mid-2026, others, such as JPMorgan, warn of potential "elevated downside risks" and possible prices between $2,250-$2,400 through June 2025. Meanwhile, most industry analysts anticipate continued growth, citing gold's double price growth since 2022 and potential for prices to hit $3,000+.
However, recent price action shows that the gold market is anything but stable. Gold peaked at $2,450/oz in April 2025 before retreating to $2,325, while some reports suggest prices have surpassed $3,500/oz. This discrepancy between sources highlights the need for updated analyst reports beyond April 2025 to get a clearer picture of gold's mid-2026 projections.
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- Goldman Sachs anticipates gold prices could reach $4000 per ounce by mid-2026.
- The cost of a June delivery gold futures contract peaked at $3509.9 due to Trump's actions.
- The surge in gold prices has raised questions about the Fed's independence, causing the dollar to plummet to a three-year low.
- Analysts are divided on where gold prices are headed, with some predicting $3000+ for gold in the mid-2026 range, while others see potential "elevated downside risks" and possible prices between $2,250-$2,400 through June 2025.
