Gold Hits Record High at $3,385 Amid Fed Uncertainty and Russia-Ukraine Tensions

Gold prices soared to an all-time high in Asian trading on Monday, driven by a weaker U.S. dollar and renewed geopolitical tensions. Spot gold surged 1.4% to $3,374.93 per ounce, hitting a record $3,385.27 earlier, while June gold futures jumped 1.8% to $3,388.20.

The rally follows President Donald Trump’s plan to restructure the Federal Reserve, which rattled markets and pushed the dollar to a three-year low. White House advisor Kevin Hassett revealed that Trump is exploring the legal grounds to fire Fed Chair Jerome Powell, raising fears about the Fed’s independence and adding uncertainty to U.S. monetary policy.

A weaker dollar typically boosts gold prices by making the metal more attractive to foreign investors. Gold has also been supported by central bank buying, inflation concerns, and its role as a safe haven amid escalating global risks.

Geopolitical tensions between Russia and Ukraine added further momentum to bullion’s rise. Although Russian President Vladimir Putin declared a one-day Easter ceasefire on Saturday, Russia resumed missile and drone attacks on Ukraine early Monday. Both sides have accused each other of violating the short-lived truce, with no signs of an extension.

Silver futures rose 1% to $32.773 per ounce, while platinum futures held steady at $978.0.

Copper prices saw modest gains, supported by the dollar’s decline. However, concerns over potential U.S. tariffs on Chinese imports capped upside. London Metal Exchange copper futures edged up 0.3% to $9,231.0 a ton, while May copper futures gained 0.8% to $4.4733 per pound.

The combination of Fed uncertainty, global conflict, and inflation continues to drive strong demand for precious metals, positioning gold as a key safe-haven asset in 2025.