Gold Soars Past $5,300 After Trump Says Dollar Should 'Find Its Level'

Gold hit a fresh all-time high, surging to $5,311 per ounce on Wednesday morning. The yellow metal continues at a high pace, surging 22.5% year-to-date, ahead of the closely watched Federal Reserve policy decision.

Trump's Dollar Price Discovery

The latest rally catalyst came from the U.S. dollar, which slid to its lowest level since February 2022. When asked to comment on the matter, President Donald Trump showed no concern.

"I think the value of the dollar — look at the business we're doing. The dollar's doing great," he said to reporters in Iowa, according to Reuters. Trump noted that he would want it to "seek its own level."

While today's Fed meeting is widely expected to leave rates unchanged, investors appear increasingly focused on the outlook beyond Chair Jerome Powell's tenure, amid rising political pressure to ease policy. As of Wednesday morning, the CME FedWatch tool shows a 97.2% chance the central bank will stay put.

"Given the tension between the Fed's mandates and the White House, markets are becoming more defensive ahead of Powell's remarks," Ilya Spivak, head of global macro at Tastylive, said, according to Reuters.

U.S. Dollar's Technical Break

A weaker dollar has been a major catalyst for bullion's advance. The chart below shows that the Dollar Index (DXY) has pierced a multi-year uptrend line on the monthly timeframe. It is a technically significant development that has intensified bearish momentum.

DXY Monthly Chart, Source: TradingView

The DXY bottomed in June 2011, following the Great Recession, before rallying more than 50% over the subsequent decade to peak in September 2022, during a period marked by aggressive Fed tightening and a broad equity selloff.

However, the apparent breakdown is not yet written in stone. With three trading days remaining before the monthly candle closes, Dow Theory dictates that only closing prices validate a structural trend break, leaving room for a potential late rebound.

Banks Move Targets

Meanwhile, banks are already revising their outlooks on gold. In a Tuesday note, Deutsche Bank raised its 2026 price target to $6,000 per ounce, while also outlining an alternative scenario.

“In alternative scenarios, a $6,900 per ounce price would in fact be more in line with the past two years’ outperformance,” the bank said.

Société Générale also sees gold reaching $6,000, while Morgan Stanley has flagged a bull-case target of $5,700. Goldman Sachs most recently raised its forecast to $5,400, highlighting meaningful upside risks amid monetary, political, and currency dynamics that continue to align in gold's favor.

Price Watch: SPDR Gold Shares (NYSE:GLD) is up 20.13% year-to-date.

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