Gold Hits Another Record After Trump's Dollar Comments

(RTTNews) - Gold held gains to reach a new peak above $5,300 an ounce on Wednesday as the U.S. dollar grappled with a "crisis of confidence", struggling near four-year lows after President Donald Trump indicated he's comfortable with its recent decline.

Spot gold traded up 1.9 percent at $5,278.54 an ounce after surging to a new peak of $5,311.68 earlier. U.S. gold futures were up 3.7 percent at $5,312.21.

The dollar sank to levels last seen four years ago as U.S.-Iran tensions escalated and a partial U.S. government shutdown loomed over an immigration dispute. After deploying USS Abraham Lincoln carrier strike group in West Asia, U.S. President Donald Trump said there's another beautiful armada floating beautifully toward Iran.

The U.S. announced a multi-day military exercise in the Middle East to bolster its military presence in the region.

Iranian officials have issued a Notice to Airmen (NOTAM) for live-fire military activity in the airspace along the Strait of Hormuz.

Meanwhile, a partial U.S. government shutdown will begin at 12:01 a.m. ET Saturday if Congress doesn't resolve a dispute over immigration enforcement.

The political pushback follows the fatal shooting by federal agents of Alex Pretti in Minneapolis.

Amid Trump's recent threats to take over Greenland and concerns about the Federal Reserve's independence, the U.S. central bank announces its interest-rate decision later in the day.

Trump said on Tuesday that the value of the dollar was "great" and that he is satisfied with fall of the dollar, which is currently at its lowest level since the beginning of 2022. Traders took his comments as a signal to intensify dollar selling.