Zürcher Nachrichten - Gold hits record, stocks slip as Trump fuels Fed fears

EUR -
AED 4.167398
AFN 78.946657
ALL 98.433364
AMD 435.679036
ANG 2.030853
AOA 1041.137332
ARS 1340.96416
AUD 1.764513
AWG 2.043983
AZN 1.926018
BAM 1.958135
BBD 2.286813
BDT 138.584042
BGN 1.955333
BHD 0.425828
BIF 3371.230219
BMD 1.134758
BND 1.461953
BOB 7.836207
BRL 6.501707
BSD 1.132609
BTN 96.947615
BWP 15.212429
BYN 3.706474
BYR 22241.260943
BZD 2.275015
CAD 1.559328
CDF 3251.082691
CHF 0.931926
CLF 0.02763
CLP 1060.280799
CNY 8.175142
CNH 8.177271
COP 4714.920368
CRC 575.40275
CUC 1.134758
CUP 30.071093
CVE 110.396649
CZK 24.930545
DJF 201.685913
DKK 7.459678
DOP 66.8587
DZD 149.326762
EGP 56.2105
ERN 17.021373
ETB 151.556585
FJD 2.565689
FKP 0.843205
GBP 0.842152
GEL 3.10954
GGP 0.843205
GHS 11.624658
GIP 0.843205
GMD 81.702207
GNF 9813.34142
GTQ 8.71031
GYD 237.287606
HKD 8.897468
HNL 29.509013
HRK 7.534231
HTG 148.114967
HUF 403.769641
IDR 18574.516735
ILS 3.993152
IMP 0.843205
INR 97.09882
IQD 1485.671679
IRR 47801.689404
ISK 144.398464
JEP 0.843205
JMD 180.539487
JOD 0.804539
JPY 163.456244
KES 146.601804
KGS 99.234437
KHR 4536.233319
KMF 493.054618
KPW 1021.28239
KRW 1569.348035
KWD 0.348223
KYD 0.945119
KZT 579.836351
LAK 24471.863943
LBP 101478.348865
LKR 339.662057
LRD 226.511717
LSL 20.282172
LTL 3.350646
LVL 0.686404
LYD 6.203951
MAD 10.486221
MDL 19.649679
MGA 5179.124662
MKD 61.519211
MMK 2382.610329
MNT 4056.084845
MOP 9.161945
MRU 44.769433
MUR 51.92685
MVR 17.543025
MWK 1963.868081
MXN 22.047936
MYR 4.830102
MZN 72.521955
NAD 20.30982
NGN 1802.291416
NIO 41.682955
NOK 11.594953
NPR 155.115783
NZD 1.901883
OMR 0.434347
PAB 1.134132
PEN 4.108163
PGK 4.650214
PHP 63.28597
PKR 319.300134
PLN 4.251082
PYG 9049.470524
QAR 4.133994
RON 5.054664
RSD 117.725495
RUB 87.581498
RWF 1601.82927
SAR 4.257034
SBD 9.476102
SCR 16.101879
SDG 681.431807
SEK 10.883916
SGD 1.465424
SHP 0.891742
SLE 25.781964
SLL 23795.312556
SOS 647.2906
SRD 42.233995
STD 23487.203908
SVC 9.923747
SYP 14753.955772
SZL 20.275573
THB 37.217478
TJS 11.342075
TMT 3.977328
TND 3.390543
TOP 2.657718
TRY 44.461867
TTD 7.701116
TWD 33.948578
TZS 3055.083652
UAH 47.047448
UGX 4122.880246
USD 1.134758
UYU 47.228193
UZS 14480.842814
VES 107.627873
VND 29528.110798
VUV 136.50206
WST 3.139886
XAF 655.846154
XAG 0.034398
XAU 0.000345
XCD 3.066741
XDR 0.815662
XOF 655.846154
XPF 119.331742
YER 276.711065
ZAR 20.418323
ZMK 10214.188939
ZMW 30.154903
ZWL 365.391681
  • RBGPF

    -0.2380

    65.43

    -0.36%

  • CMSC

    0.1300

    22.22

    +0.59%

  • CMSD

    0.1100

    22.22

    +0.5%

  • SCS

    -0.0500

    10.31

    -0.48%

  • NGG

    0.8745

    71.39

    +1.22%

  • GSK

    1.0300

    41.03

    +2.51%

  • BTI

    0.2300

    45.2

    +0.51%

  • BP

    -0.0700

    29.1

    -0.24%

  • RYCEF

    0.0700

    11.65

    +0.6%

  • RIO

    -0.7700

    59.43

    -1.3%

  • JRI

    0.1600

    12.94

    +1.24%

  • RELX

    -0.0100

    53.92

    -0.02%

  • BCE

    0.3000

    21.8

    +1.38%

  • VOD

    0.0000

    10.34

    0%

  • BCC

    -0.9700

    86.88

    -1.12%

  • AZN

    1.9600

    72.83

    +2.69%

Gold hits record, stocks slip as Trump fuels Fed fears
Gold hits record, stocks slip as Trump fuels Fed fears / Photo: Brendan SMIALOWSKI - AFP

Gold hits record, stocks slip as Trump fuels Fed fears

Bullion hit another record Tuesday while the dollar steadied and equities mostly fell as Donald Trump's latest salvo against Federal Reserve boss Jerome Powell added fuel to fears about the central bank's independence.

Text size:

With the US tariff blitz still causing ructions on global trading floors, investors are now dealing with the added worry that the US president will try to remove the country's top banker that many fear could hammer already fragile market confidence.

Trump took a swipe at Powell last week for his warning that the sweeping levies would likely reignite inflation, saying his "termination cannot come fast enough" and adding that "I'm not happy with him. I let him know it and if I want him out, he'll be out of there real fast, believe me".

While that raised eyebrows, the Republican tycoon sent shivers through markets Monday by calling on the Fed boss again to make pre-emptive cuts to interest rates and calling him a "major loser" and "Mr. Too Late".

He said on his Truth Social platform that there was "virtually" no inflation as energy and food costs were well down and pointed to the several reductions by the European Central Bank.

The outbursts have fanned concern that Trump is preparing to oust Powell, with top economic adviser Kevin Hassett saying Friday the president was looking at whether he could do so.

Panicked Wall Street investors once again dumped US assets, with all three main indexes ending down around 2.5 percent on Monday.

"The first volley on Thursday had little market reaction, but Monday's second barrage has seen an intensification of the 'sell America trade'," said National Australia Bank's Tapas Strickland.

"Whether or not President Trump is legally able and willing to move against the US Fed, the jousting underscores the loss of US exceptionalism and the very real policy risk for investors."

The rush for safety saw gold hit yet another record above $3,457, and while the dollar steadied after the previous day's selloff, it remained under pressure against its major peers.

Stocks swung between gains and losses on the first full day of business after the Easter break.

Hong Kong, Sydney, Taipei, Jakarta, Wellington and Manila dropped, while Shanghai, Singapore and Seoul edged up.

However, analysts warned of another rout if Trump were to try to fire the Fed boss, which many said could cause a crisis of confidence in the US economy.

"Were Powell to be fired, the initial reaction would be a huge injection of volatility into financial markets, and the most dramatic rush to the exit from US assets that it is possible to imagine," said Pepperstone strategist Michael Brown.

"Lower, much lower, equities; Treasuries sold across the board; and, the dollar falling off a cliff.

"Any sign of the longstanding, independent nature of the Fed coming under threat would see investors across the globe selling every single US-based asset that they have, and also poses the genuinely scary prospect of upending the entire way in which the global financial system operates."

- Key figures at 0230 GMT -

Tokyo - Nikkei 225: DOWN 0.1 percent at 34,255.71 (break)

Shanghai - Composite: UP 0.3 percent at 3,301.74

Hong Kong - Hang Seng Index: DOWN 0.3 percent at 21,330.37

Euro/dollar: DOWN at $1.1500 from $1.1510 on Monday

Pound/dollar: UP $1.3384 at $1.3377

Dollar/yen: DOWN at 140.76 yen from 140.89 yen

Euro/pound: DOWN at 85.91 pence from 86.03 pence

West Texas Intermediate: UP 1.0 percent at $63.73 per barrel

Brent North Sea Crude: UP 0.7 percent at $66.75 per barrel

New York - Dow: DOWN 2.5 percent at 38,170.41 (close)

London - FTSE 100: Closed for a holiday

M.Hug--NZN