By Erkin Kamran

Gold prices hit another all-time high on Tuesday before correcting, as growing concerns over Fed independence and intensifying trade tensions fueled a flight to safe-haven assets.

President Donald Trump renewed his criticism of Fed Chair Jerome Powell and once again hinted at the possibility of his removal, raising fears of political interference in the Federal Reserve’s policy.

Combined with calls for immediate rate cuts, the remarks heightened market uncertainty and supported gold.

Persistent trade tensions with China continue to support gold’s bullish outlook as no signs of abating have emerged. The continued tensions suggest a potential for further deterioration in the global trade environment, which could continue to support demand for safe-haven assets such as gold.

Meanwhile, continued geopolitical risks in Eastern Europe and the Middle East could remain a strong catalyst for the metal. In this regard, any moves toward de-escalation could improve market sentiment and shift demand toward riskier assets. Looking ahead, investors will monitor upcoming speeches from Federal Reserve officials for additional signals on the trajectory of monetary policy and its impact on gold.

Kamran is Traze CEO