Does the price of gold collapse after the recent American administration decisions?

Gold prices fell from their highest standard levels to reach $ 3000 an ounce, amid a global sale wave raised by recent trade tensions and US administration decisions, especially after President Donald Trump imposed new customs duties, according to the FX Street platform.

Gold price: sharp losses

Gold continued its losses to record its lowest level in a week at 3,015 dollars an ounce, before he recovered a little after the speech of the Federal Reserve Speaker Jerome Powell, who indicated that customs duties may lead to accelerating inflation again. Gold was trading later at $ 3,029, a decrease of 2.70%.

Powell’s speech increases the pressure on gold

Amid the escalation of the trade war between the United States and China, Powell stressed that the new customs duties may negatively affect the American economy, by slowing down and high inflation. At the same time, he revealed the direction of the American federalism towards facilitating monetary policy in the coming period.

Sharp fluctuations

Last Thursday, Trump’s announcement imposed customs duties of at least 10% on imports of 180 countries, what his administration described as “unfair commercial practices”, a shock in global markets, and led to violent fluctuations in American, Asian and European stock markets.

Gold abandoned its historical levels

According to the “Trading Vio” data, gold prices decreased by 2.42% or $ 130, to trade at $ 3,037 an ounce, down from the highest historical level recorded at $ 3,168.04.

Hedge boxes record the worst losses since Corona

The Financial Times revealed that many hedge funds were lost to the largest since the Kofid-19, especially after Trump’s decision to impose customs duties. “Gold is usually seen as a defensive origin, and it is not familiar to sell it after a risk -fraught event given his role as a safe haven in investment portfolios,” said Souki Cuper, analyst at Standard Chartard, said.

From the standard ascending to the sudden decline

Since the beginning of the year, gold has recorded strong gains, as it rose from $ 2,658 to the current levels, at a growth rate of 15.73%, taking advantage of the state of economic uncertainty after Trump’s victory in the presidential elections.
Also read: Why is gold a good safe haven yet despite its high prices?

Economic expert: “No fixed rules in gold”

For his part, Ilya Spavak, head of the global macroeconomic department at the “Tyste Life” network, said:
“Gold usually rises in response to cases of geopolitical and economic uncertainty that are difficult to prosecute. But once the markets find a way to pricing these risks, support gradually fades.”

Gold price expectations 2025 – 2026

HSBC raised its forecasts for the price of gold, indicating the continuation of the global uncertainty. The bank expected the average price of $ 3015 an ounce in 2025 and $ 2915 in 2026, which is much higher than its previous estimates of $ 2687 and $ 2615, respectively.
The bank attributed these amendments to several factors, most notably the war in Ukraine, the escalation of the conflict in the Middle East, and possible transformations in US foreign policy.
Also read: Why are gold prices to fluctuate severely … and what are the precious metal expectations?
He also warned that any recovery in the US dollar by the end of 2025 may be limited to the rise of gold, especially if interest rates are not reduced as expected in 2024.

Goldman: The current gold is a chance to buy

The US Investment Bank, Goldman Sachs, described the recent decline in gold prices as a good opportunity to buy, stressing that gold remains one of the most powerful investment opportunities in the commodity markets.
In its latest note, the bank attributed this decline to temporary technical factors, such as liquidating investment centers, poor stock market, and a shift towards alternative assets
He added: “We keep our expectations that the price of gold will reach 3300 dollars an ounce by the end of the year, with a trading scope of targeting between 3250 and 3520 dollars.”

Gold is under pressure … and the next support at $ 2937

Technically, gold is still subject to strong sale. And if the price is closed daily under $ 3000, it is likely that the next support level is targeted for the 50 -day moving average of $ 2,937, followed by the level of $ 2900 an ounce.