Rumors of Fed Chairman’s Dismissal Push Gold to $3,400 per Ounce

Gold futures prices surged above $3,400 per troy ounce for the first time in history, according to market data.

One of the key drivers behind the sharp rise in gold prices was rumours regarding the possible dismissal of Federal Reserve Chairman Jerome Powell. Last week, U.S. President Donald Trump criticized Powell for refusing to lower interest rates despite the administration’s pressure.

The situation escalated when Kevin Hassett, head of the National Economic Council at the White House, stated that the president and his team were considering Powell’s removal.

This news alarmed investors. Analysts from Oversea-Chinese Banking Corporation (OCBC) warned that any attempt by the presidential administration to undermine the independence of the Federal Reserve could erode trust in the U.S. dollar. Additionally, a sharp cut in rates could potentially accelerate inflation.

However, by April 19, American media outlets reported that President Trump had backed away from the idea of dismissing Powell. According to The New York Times, the president feared the negative market reaction that might follow an attempt to oust the Fed chairman.

Kursiv Uzbekistan reports that gold prices in Uzbekistan reached 7.27 mln Uzbek soums for a five-gram gold bar.