The price of gold has for the first time in history exceeded $3400 per ounce. In the trades at the Chicago Mercantile Exchange (CME), the quotes for June futures rose by 2.19 percent, reaching $3401.3 per ounce for it.
Reportedly, gold is becoming more expensive against the backdrop of the further weakening of the US dollar and concerns about the trade war. The trade war initiated by US President Donald Trump has destabilized markets and reduced the demand for risky assets. This has increased investment in gold, which is considered a safe asset.
The dollar's DXY index fell by 1.29 percent, to 98.234 points, marking the lowest level in more than three years since March 31, 2022. The DXY index represents the value of the US dollar relative to six other major currencies.
The news that Trump is considering the possibility of dismissing Federal Reserve Chairman Jerome Powell also affected the gold market.
Powell's dismissal would not only weaken the principle of the independence of the Central Bank but also pose a risk of politicizing the US monetary policy. This could be a worrying signal for the markets, said Oversea-Chinese Banking Corp. strategist Christopher Wong.
He said that if confidence in the Federal Reserve system is questioned, it could also weaken confidence in the dollar and accelerate the flow into safe assets like gold.
