Gold Hits Record, Stocks Mixed As Trump Fuels Fed Fears

Gold reached $3,500 an ounce for the first time Tuesday as US President Donald Trump's tariffs and verbal assault on the Federal Reserve prompted investors to snap up the safe haven asset.

Europe's main stock markets diverged in midday deals as the region's trading resumed after a long weekend break for Easter.

Asian indices closed mixed, while the dollar diverged against major rivals and oil prices firmed.

Analysts awaited publication Tuesday of economic growth forecasts from the International Monetary Fund, with all eyes on its assessment of how the trade war could impact global output and inflation.

"Lack of certainty is sending investors right into the arms of traditional safe haven assets, with gold and the Japanese yen both cashing in on the drama," noted Matt Britzman, senior equity analyst at Hargreaves Lansdown.

With the US tariff blitz still causing ructions on global trading floors, investors are now dealing with the added worry that Trump will try to remove the country's top banker.

The president last week took a swipe at Fed chief Jerome Powell over the latter's warning that the sweeping levies would likely reignite inflation.

While that raised eyebrows, Trump sent shivers through markets Monday by again calling on Powell to make pre-emptive cuts to US interest rates and calling him a "major loser" and "Mr Too Late".

The Republican tycoon said on his Truth Social platform that there was "virtually" no inflation, claiming energy and food costs were well down and pointed to the several interest rate reductions by the European Central Bank.

The outbursts have fanned concern that Trump is preparing to oust Powell, with top economic adviser Kevin Hassett saying Friday that the president was looking at whether he could do so.

Panicked Wall Street investors once again dumped US assets, with all three main indices ending down around 2.5 percent on Monday.

Analysts warned of another rout should Trump try to fire the Fed boss, which many said could cause a crisis of confidence in the US economy.

"Were Powell to be fired, the initial reaction would be a huge injection of volatility into financial markets, and the most dramatic rush to the exit from US assets that it is possible to imagine," said Pepperstone strategist Michael Brown.

"Lower, much lower, equities; Treasuries sold across the board; and, the dollar falling off a cliff."

London - FTSE 100: UP 0.2 percent at 8,288.52 points

Paris - CAC 40: DOWN 0.4 percent at 7,259.23

Frankfurt - DAX: DOWN 0.5 percent at 21,111.22

Tokyo - Nikkei 225: DOWN 0.2 percent at 34,220.60 (close)

Hong Kong - Hang Seng Index: UP 0.8 percent at 21,562.32 (close)

Shanghai - Composite: UP 0.3 percent at 3,299.76 (close)

New York - Dow: DOWN 2.5 percent at 38,170.41 (close)

Euro/dollar: DOWN at $1.1498 from $1.1510 on Monday

Pound/dollar: DOWN $1.3373 at $1.3377

Dollar/yen: DOWN at 140.36 yen from 140.89 yen

Brent North Sea Crude: UP 1.4 percent at $67.20 per barrel

West Texas Intermediate: UP 1.6 percent at $63.40 per barrel