Gold price (XAU/USD) shows no signs of fatigue and extends its rally higher yet again, hitting another record high at $3,500 in early Asian trading on Tuesday. However, price action is cooling off a bit, and Gold dips back to around $3,460 at the time of writing due to some profit taking at the psychological level. Several markets across the globe are returning to normal trading regimes after the holiday-infused Easter price action, with Good Friday and Easter Monday seeing reduced trading volumes due to bank holidays.

This week's rally is being fueled by mounting uncertainty and pressure on the independence of the Federal Reserve (Fed) and its Chairman Jerome Powell. United States (US) President Donald Trump has been blaming the Fed and its Chairman for the still-elevated interest rates. Trump accused Fed Chairman Powell of lowering rates during Joe Biden's presidency and said to be looking at any means or possibilities to have the Chairman replaced by Trump's pick to get US rates slashed quickly.
US President Trump's call on the Fed to cut interest rates immediately is seen by several traders and market participants as a threat to the central bank's independence that drove the US Dollar to its lowest since 2022 in the US Dollar Index (DXY),
Gold may be "the only true safe-haven asset left" as investors question US assets, including Treasuries, according to Jefferies. "With the recent selloff in US Treasuries, and a view that Treasuries are inextricably tied to tariffs, a trade war with China, and the US fiscal situation, we believe gold is the only true safe-haven asset left,"

Source; Fxstreet