Gold prices exploded strongly above $5,200 an ounce following Trump's recent statements and the sharp fall in the US dollar index to its lowest level in 4 years.
Gold futures were trading at $5,228 per ounce at 04:36 Saudi time, having reached a record high of $5,237.61 per ounce earlier on Wednesday.
Spot gold contracts hit $5,200 an ounce, with the record high at $5,202 an ounce.
Trump's statements
US President Donald Trump said he will soon announce the next Federal Reserve chairman.
Trump stated that the US dollar moves like a yo-yo in response to statements, and declared that the current dollar rate is appropriate, and that he wants to see interest rates fall further.
These statements had strong repercussions on the US dollar index, which collapsed by 1% following the statements and traded at its lowest level in 4 years amid fears of a sharp interest rate cut and the Federal Reserve losing its independence from policy.
The Federal Reserve will announce its interest rate decision today.
The Federal Reserve is widely expected to keep interest rates steady this evening.
But as the announcement of the next Federal Reserve chairman draws near, the market will not be looking to hold steady this time, but rather to future interest rate cuts from Trump's nominee, who has said he will not choose anyone who opposes him on interest rates.
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