Gold prices surged past $3,500 for the first time ever on Tuesday, driven by escalating tensions between President Trump and Federal Reserve Chair Jay Powell. President Trump publicly criticized Powell’s handling of the economy, demanding a rate cut and questioning the Fed’s independence. This volatile period sparked investor panic, leading many to seek refuge in safe-haven assets like gold. The stock market also reacted negatively, with S&P 500 and Nasdaq experiencing sharp declines while European markets showed modest losses. Investors were increasingly uncertain about the economic future and sought out gold as a hedge against instability. As the dollar index continued its decline, the turmoil added uncertainty to an already volatile market. This latest clash between Trump and Powell adds further stress on a central bank struggling to maintain credibility, particularly after previously imposing tariffs that have sparked inflation concerns. The bond market remained cautious, while Bitcoin held relatively steady amidst the turmoil. Experts predict this volatility will likely continue until the Fed’s next meeting in May, where its decision regarding interest rates will be crucial.