Trump Demands Rate Cuts, Gold Surges 20% Amid Trade Tensions

President Donald Trump has escalated his pressure on the Federal Reserve, demanding immediate interest rate cuts and even suggesting that he has the authority to fire Fed Chairman Jerome Powell. This comes as global economic concerns mount, with gold prices surging to new highs amid escalating trade tensions. Meanwhile, Nvidia CEO Jensen Huang emphasized the importance of the China market during his recent visits to Beijing and Shanghai.

Trump's latest remarks, made on his social media platform, criticized Powell for being "too slow" and called for immediate rate cuts. He also hinted at the possibility of firing Powell, stating that he should leave as soon as possible. This is not the first time Trump has publicly criticized the Fed; he has been vocal about his dissatisfaction with Powell's handling of monetary policy since the beginning of his presidency. Trump's advisors are divided on whether to take action, with some advocating for a more direct challenge to Powell's leadership.

The escalating trade war has led to increased uncertainty and volatility in global markets. Gold, often seen as a safe-haven asset, has benefited from this environment, with prices reaching a record high of $3,371.90 per ounce on the New York Commodities Exchange. Analysts from major banks have set ambitious targets for gold, with some predicting it could reach $4,000 or even $4,200 per ounce. The surge in gold prices is driven by a combination of factors, including central bank purchases, investor demand, and concerns about global economic stability.

Japan, a key U.S. ally, has also been affected by the trade tensions. Japanese Prime Minister Yoshihide Suga has stated that Japan will not make significant concessions in its trade negotiations with the U.S. and will not rush to reach an agreement. Suga's remarks come as Japan faces potential tariffs on its exports to the U.S., which could have a significant impact on its economy. The U.S. has already imposed tariffs on Japanese steel and aluminum, and there are concerns that further tariffs could be imposed on Japanese automobiles.

Nvidia's Huang, during his visits to Beijing and Shanghai, reiterated the company's commitment to the China market. He met with Chinese government officials and emphasized the importance of continued cooperation between Nvidia and China. Huang's visit comes as the U.S. has imposed restrictions on the export of certain Nvidia chips to China, which has had a significant impact on the company's business. Despite these challenges, Huang expressed optimism about the future of Nvidia's operations in China and the potential for further growth in the market.

The escalating trade tensions and uncertainty in global markets have led to increased volatility and concerns about economic stability. While some analysts predict that gold prices could continue to rise, others warn of the potential for a market correction. The outcome of the trade negotiations between the U.S. and its partners, as well as the actions taken by central banks, will be key factors in determining the direction of global markets in the coming months.