Gold Breaks $3,400 as Fed Uncertainty and Tariff Fears Trigger a Safe-Haven Stampede

If you’re watching markets in May 2025, one thing is clear: Gold is moving like war’s been declared.

As geopolitical jitters return and rate policy hangs in the balance, investors are diving headfirst into the ultimate fear trade, gold. And it just hit a two-week high, clocking in at over $3,400/oz.

Trump’s tariff threats. A Fed that’s boxed in. A dollar losing steam. This is what safe-haven demand looks like in real time.

Market Snapshot: Gold Leads the Pack

Meanwhile, the U.S. dollar is slipping, making dollar-priced metals more attractive to global buyers. The perfect storm.

What’s Driving the Gold Surge?

• Tariff Tension: President Trump is rattling the trade cage again, reigniting fears of another round of global uncertainty.
• The Fed Is Cornered: With inflation cooling but growth stalling, the market is betting the Fed will hold but it’s still guessing.
• Global Volatility: From shaky Chinese manufacturing data to Middle East concerns, the world is flashing red on multiple dashboards.

Investors want safety, not yield. And gold is where they’re hiding.

Is Gold Just Getting Started?

This isn’t just technical buying it’s sentiment-driven.

We’re entering a cycle where hedge funds, retail traders, and central banks are all eyeing gold as a core defensive play. The only question now:

Will $3,500 be the next stop, or is this the last gasp before the Fed crushes demand?

One thing’s for sure: when gold runs during a policy fog and trade war chatter, it’s not a coincidence it’s a signal.