Investing.com -- Shares of major gold mining companies, including Newmont (NYSE: NEM), Barrick Gold (NYSE: NYSE:GOLD), Agnico Eagle Mines (NYSE: NYSE:AEM),  Kinross Gold  (NYSE: NYSE:KGC), AngloGold Ashanti (NYSE: AU) climbed 3% following a surge in gold prices to a record high, driven by a combination of US dollar weakness, criticism of the Federal Reserve, and ongoing trade war concerns.

Gold’s rally, which saw bullion surpassing $3,400 an ounce, came amidst the US currency falling to its lowest point since late 2023. The market’s move was further influenced by President Donald Trump’s consideration of firing Fed Chair Jerome Powell and advocating for lower interest rates. These developments have raised concerns over the independence of the Federal Reserve and potential politicization of US monetary policy.

The precious metal has experienced a significant uptrend this year as the trade conflict between the US and China has led to market uncertainty and a shift towards safer investments. The appetite for risk assets has weakened, while demand for havens has grown, as evidenced by a 12-week increase in holdings of bullion-backed exchange-traded funds—the longest such streak since 2022. Additionally, central banks have been accumulating gold in their reserves, contributing to strong global demand.

Amid these market conditions, banks have revised their outlook on gold, with some, like  Goldman Sachs Group  Inc (NYSE:GS)., predicting the metal could reach $4,000 by the middle of next year.

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