Market data shows that in the early Asian session on Tuesday, spot gold prices crossed the $3,500 mark in one fell swoop, setting a record high of $3,508.73 per ounce, surpassing the previous high set in April. So far this year, international gold prices have risen by more than 33%, becoming one of the best performing commodities.

Both gold and silver prices have more than doubled in the past three years, as rising risks in geopolitical, economic and global trade have driven growing demand for these historic safe-haven assets. At the same time, the selling situation in the global bond market has also caused more safe-haven funds to pour into the precious metals market.

Last week, U.S. President Trump’s attack on the Fed escalated, becoming the latest factor for many investors to worry about, and the threat to Fed’s independence may once again weaken people’s confidence in U.S. assets.

The market is awaiting a U.S. court ruling to determine whether Trump has a legitimate reason to remove Fed Director Cook from the central bank. In addition, the U.S. Federal Court of Appeal ruled last Friday local time that most of the global tariff policies implemented by Trump were illegal, which also increased the uncertainty faced by US importers.

BMO commodity analyst Helen Amos pointed out, “The market is currently concerned not only with the Federal Reserve, but with the overall strength of the United States. From the perspective of safe-haven demand, this is naturally good for gold.”

In terms of central bank monetary policy, the market generally expects the Fed to cut interest rates this month after Fed Chairman Powell cautiously opened the door to interest rate cuts last month, which is expected to increase the attractiveness of interest-free gold. The key U.S. non-farm jobs report released Friday could further exacerbate signs of growing labor market downturn, providing reasons for rate cuts.

“The market is focusing on Friday’s U.S. jobs report, which is expected to allow the Fed to resume rate cuts from September. This will support demand for investment in gold,” said UBS analyst Giovanni Staunovo.

BMO capital market analysts Helen Amos and George Heppel pointed out in the report that as the technical resistance level is broken, gold is very likely to continue its upward trend this week. Gold ETF positions recorded its largest increase since April last week, and it is expected that another week of net inflow will be ushered in this week, and non-commercial futures positions may further increase.