Gold prices experienced a significant surge following comments made by former US President Donald Trump on his Truth Social platform. According to IG market analyst Tony Sycamore, spot gold jumped $US41 to $US3477 an ounce after Trump claimed US prices are “WAY DOWN” with virtually no inflation. This rally leaves gold just $US23 below its record high of $US3500, reached on April 22nd. Silver also saw a notable increase, rising from $US38.38 to $US40.54, marking its highest level since September 2011.
Trump’s post addressed inflation and energy prices, also criticising wind energy and highlighting the impact of tariffs. Sycamore noted that “The market reacted immediately to Trump’s comments, with gold benefiting from concerns over the Fed’s independence and potential policy shifts.” These comments come amid Trump’s reported efforts to influence the Federal Reserve Board, including attempts to dismiss a governor and calls for immediate rate cuts.
The surge in gold prices also follows the release of the Federal Reserve’s preferred inflation gauge, the Core PCE Price Index, on Friday. The index rose 0.3 per cent month-on-month, pushing the annual rate to 2.9 per cent, which remains above the Fed’s target of 2 per cent.
“Investors are closely watching both inflation data and political developments, which are creating heightened volatility across markets,” Sycamore added. This confluence of economic indicators and political activity appears to be driving the recent movements in precious metals markets.
