Spot Gold pulled back from an all-time high of $3,500.12 per troy ounce on Wednesday, after US President Donald Trump withdrew threats to fire Federal Reserve Chair Jerome Powell and also expressed optimism over a trade deal with China, which reduced the metal’s safe haven allure.
Yesterday US President Trump withdrew his threats to dismiss Powell after days of intensifying criticism of the Fed’s Chair for not lowering interest rates.
Additionally, Trump said that a trade deal with China could “substantially” lower tariffs on Chinese imports, while the final deal would not “be anywhere near” current tariff levels.
Meanwhile, Federal Reserve Bank of Minneapolis President Neel Kashkari said it was too early to know how short-term interest rates would have to be adjusted for the new tariffs and their potential impact on inflation and growth.
Spot Gold was last down 2.08% on the day to trade at $3,310.75 per troy ounce.
“There is no form of a bullish exhaustion yet from the upper bond level so there could still be potential movement on the upside for gold,” Kelvin Wong, senior market analyst, Asia Pacific at OANDA, was quoted as saying by Reuters.
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