COMEX gold rises above USD 3340 per ounce.

COMEX gold rises above USD 3340 per ounce.

COMEX gold futures surged to a new high of USD 3340 per ounce on Wednesday, April 28, 2025, as geopolitical tensions and market sentiment continued to influence the precious metal's price. This significant milestone comes amidst ongoing tensions between U.S. President Donald Trump and Federal Reserve Chair Jerome Powell, as well as a weakening U.S. dollar.

The escalating tensions between Trump and Powell, who has been under criticism for not cutting interest rates, have contributed to a rise in gold prices. The U.S. dollar index, which measures the value of the dollar against a basket of major currencies, has fallen to a three-year low, further supporting the gold rally. The weakening dollar makes gold more affordable for international buyers, driving up its price.

Gold futures on the Multi Commodity Exchange (MCX) also saw a significant increase, with the MCX gold rate hitting a new peak of ₹99,178 per 10 gm. The spot gold price oscillated around USD 3,482 per ounce, while the COMEX gold price was quoted at USD 3,495 per troy ounce. The U.S. Dollar Index was around 97.86, nearly 0.19% lower than the previous day's close.

Market analysts attribute the rise in gold prices to several factors. Anuj Gupta, Head — Commodity & Currency at HDFC Securities, stated that the criticism of the US Fed Chair Jerome Powell by US President Donald Trump has led to a decrease in the value of the US dollar, which in turn has boosted gold prices. Additionally, concerns about a global economic slowdown due to heightened US-China trade tensions have fueled demand for gold as a safe-haven asset.

Nigel Green, CEO of deVere Group, noted that the conflict between Trump and Powell has now become more pronounced, with global investors increasingly uncertain about the outcome. This uncertainty has driven investors towards safe-haven assets like gold.

Gold prices extended their record-breaking rally as the week began with strong early buying. Comex gold approached the USD 3,500 mark, while MCX gold registered its fresh all-time highs.

The escalating tariff tensions, concerns over the US economic outlook, and the looming US debt crisis have also contributed to the gold rally. Continued buying from China, global central banks, and institutional investors has added momentum to the bullish sentiment.

Despite the recent surge, gold prices experienced a brief retreat on Wednesday as President Trump indicated that he has no plans to fire the U.S. Fed's chief and signaled progress with China on the tariff front. This led to an improvement in sentiment in wider financial markets, causing a rotation out of safe-haven assets.

References:
1. [https://www.livemint.com/market/commodities/gold-rate-today-yellow-metal-hits-new-peak-amid-trump-powell-interest-rate-fued-weak-us-dollar-rate-11745292460401.html](https://www.livemint.com/market/commodities/gold-rate-today-yellow-metal-hits-new-peak-amid-trump-powell-interest-rate-fued-weak-us-dollar-rate-11745292460401.html)
2. [https://www.citybuzz.co/2025/04/25/barrick-gold-sells-50-stake-in-massive-alaskan-gold-project-for-1-billion/](https://www.citybuzz.co/2025/04/25/barrick-gold-sells-50-stake-in-massive-alaskan-gold-project-for-1-billion/)
3. [https://seekingalpha.com/news/4434092-stock-market-news-today-nasdaq-sp500-dow-jones](https://seekingalpha.com/news/4434092-stock-market-news-today-nasdaq-sp500-dow-jones)
4. [https://uk.finance.yahoo.com/news/gold-falls-trump-backs-down-031446514.html](https://uk.finance.yahoo.com/news/gold-falls-trump-backs-down-031446514.html)