Gold prices have surged to a record high, surpassing $3,500 per ounce, as investors seek safe-haven assets amid escalating tensions between President Donald Trump and Federal Reserve Chair Jerome Powell. The spike follows Trump's public criticism of Powell, including calls for immediate interest rate cuts and threats to remove him from his position, raising concerns about the Fed's independence and contributing to market volatility. ​

The S&P 500 and Nasdaq experienced significant declines, dropping 2.4% and 2.6% respectively, with the Nasdaq entering bear market territory. The U.S. dollar also fell to a three-year low, further fueling demand for gold. ​

Analysts warn that undermining the Fed's independence could have lasting global economic repercussions. The Federal Reserve is expected to take a cautious stance in its upcoming rate decision on May 7, as it assesses the impact of tariffs on inflation and growth.