Gold Surges 15% to $3,500 as Investors Flee U.S. Assets

On April 22nd, significant shifts were observed in the financial markets, with gold prices surging past $3,500 per ounce during overnight trading. This rally indicates a broader market trend away from U.S. stocks, bonds, and the dollar, driven by growing concerns over the Federal Reserve's independence. The escalating rhetoric from Trump regarding interest rate cuts and potential legal actions against Fed Chairman Powell has contributed to heightened market tensions.

In response to these developments, both digital assets and physical gold have seen increased demand as safe-haven investments. Bitcoin, in particular, reached its highest level since early April, fueled by intensified spot demand. This surge in interest has led to a notable increase in Bitcoin spot ETF inflows, totaling $381.3 million, and a multi-month high premium on Binance US. The trading volume for spot transactions also exceeded that of perpetual contracts, highlighting the growing institutional interest in Bitcoin and its potential to decouple from traditional market trends.

Meanwhile, the U.S. credit market is showing signs of strain, with investment-grade credit default swap rates reaching a week high. This reflects investor concerns amidst the escalating tensions between Trump and the Federal Reserve. Despite these challenges, both Bitcoin and gold are demonstrating resilience, positioning themselves as preferred options for investors seeking secure investment avenues in a volatile market.