Mon Apr 21 12:50:00 UTC 2025: **Gold Hits Record High Amid Trump’s Tariff War and Dollar Weakness**

NEW YORK – Gold prices soared to a record high on Monday, exceeding $3,384, driven by a weakening dollar and escalating concerns over President Trump’s trade policies. The surge comes as several markets remain closed for the Easter holiday, ahead of a week crucial for economic data releases.

Trump’s ongoing trade war, particularly the intensified conflict with China, is fueling global economic uncertainty. While some nations have sought individual trade deals with the US to mitigate the impact of tariffs, China has firmly rejected compromises that would harm its interests. A commerce ministry spokesperson issued a statement warning against appeasement, stating that such actions would ultimately fail and harm all parties involved. Despite Trump’s claims of ongoing negotiations with China and his confidence in reaching a deal, Beijing’s stance remains resolute.

The President’s public clashes with Federal Reserve Chairman Jerome Powell, questioning the Fed’s independence and demanding interest rate cuts, have further weakened the dollar. This has fueled concerns among economists and international finance ministers, including French Finance Minister Eric Lombard, who cited Trump’s actions as damaging the dollar’s credibility. Austan Goolsbee, president of the Chicago Fed, emphasized the critical importance of monetary independence from political interference.

The mixed global market reaction reflects this uncertainty. While some Asian markets like Shanghai and Seoul saw gains, others, including Tokyo and Taipei, experienced declines. Oil prices also fell due to global economic concerns. Analysts, such as Stephen Innes of SPI Asset Management, highlight the significant reputational damage to the US, noting that investors and allies are increasingly viewing American policymaking as unpredictable. The upcoming release of April manufacturing data is anticipated to shed light on the early impact of Trump’s tariffs on the global economy.

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