POUND STERLING HITS SEVEN-MONTH HIGH – Gold surged to a new all-time high, exceeding $3,500 per ounce, following a 2.9% rise
The British pound climbed to its highest level against the US dollar since September, following renewed calls from Donald Trump for the US Federal Reserve to cut interest rates.
Sterling rose by 0.3% to $1.342, buoyed by a broader decline in the dollar amid growing market unease that thr president may be seeking to remove Federal Reserve Chairman Jerome Powell.
European stock markets dipped, though less sharply than their US counterparts, as investors showed caution toward American assets.
Meanwhile, gold surged to a new all-time high, exceeding $3,500 per ounce, following a 2.9% rise on Monday. The rally reflects investor anxiety over Trump’s potential interference with the Fed’s autonomy, raising fears of a new inflation crisis.
A JP Morgan economist cautioned, “Any threat to the Fed’s independence adds upward risks to an already pressured inflation outlook, worsened by tariffs and persistently high inflation expectations.”
This financial turbulence comes as UK Chancellor Rachel Reeves prepares to attend the spring meetings of the International Monetary Fund (IMF) and the World Bank in Washington—the first such meetings since Trump’s return to office.
