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Gold (XAU/USD) has reached another record high, peaking earlier in the day. However, prices dipped slightly as the U.S. market opened. The dip reflects some profit-taking near a key psychological level. After the Easter holidays, global markets are returning to regular trading. After a quiet period with lower trading activity, volumes have now picked up. The gold rally continues this week, boosted by political pressure on the U.S. Federal Reserve.

Investors Turn to Gold as Dollar Slips and Fed Faces Criticism

Gold prices surged due to rising uncertainty around the U.S. Federal Reserve. President Trump publicly criticised Fed Chairman Jerome Powell. He blamed the Fed for keeping interest rates high. Trump wants quick rate cuts and may try to replace Powell. These actions worry investors. They fear political pressure could hurt the Fed’s independence. A weaker Federal Reserve could damage market trust. That’s why investors are moving money into gold.

The U.S. Dollar is falling as a result. Traders see Trump’s comments as a threat to the Fed’s credibility. The U.S. Dollar Index dropped to its lowest since 2022. This made gold more attractive. A weaker dollar usually boosts gold prices. At the same time, U.S. Treasuries are no longer seen as safe. Investors are worried about trade tensions, high debt, and possible inflation. So, many now see gold as the best safe-haven option.

Institutional investors are also backing gold. Analysts at Jefferies said gold may be the only true haven left. They expect gold to rise even more if global risks stay high. Jefferies also pointed out strong gold mining stocks. As fear grows in markets, gold benefits. Both technical and fundamental signs support the bullish trend. Gold is rising not just because of charts, but also because of deep market worries.

Technical Analysis: Gold Breaks Out of Ascending Channel

The daily chart for gold shows that the price is trading within an ascending channel for more than a year. This technical pattern reflects a steady uptrend with higher highs and higher lows. Price respected the lower and upper boundaries of the channel consistently. Around late 2024 and early 2025, gold dipped briefly to the channel’s bottom. However, it quickly rebounded, indicating strong buying interest.

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Recently, gold broke out of the upper boundary of the channel. This breakout is marked on the chart and confirmed by a strong bullish candle. It reflects a sharp upward move in price, backed by growing safe-haven demand. Investors are buying gold due to global economic uncertainty and political tensions in the U.S. The Federal Reserve's independence is under pressure. U.S. President Donald Trump has publicly criticised Chairman Jerome Powell. Trump wants immediate rate cuts, which have shaken investor confidence in the Fed’s neutrality.

As the U.S. Dollar weakens, gold continues to rise. The breakout above the channel shows that buyers are firmly in control. This breakout suggests the potential for further gains if political and economic concerns persist. The technical setup remains bullish. As long as the price stays above the broken channel line, the momentum is expected to continue.

Conclusion

Gold’s breakout above a long-term ascending channel signals a major shift in market sentiment. With increasing global uncertainty and political tension in the U.S., investors are rushing toward safe-haven assets like gold. This bullish move is driven not only by technical patterns but also by fundamental pressures on the Federal Reserve and the broader U.S. economy. If the current environment continues, gold prices could reach new highs in the coming months.

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