Gold prices drop after Trump’s retreat from Powell’s dismissal

Gold prices fell today, after US President Donald Trump retreated from his threats to dismiss the President of the Federal Reserve (US Central Bank) Jerome Powell and expressed his optimism about the conclusion of a trade agreement with China, which negatively affected the attractiveness of the yellow metal, which is a safe haven.

By 05:52 GMT, gold came down in instant transactions 1.9 percent to $ 3318.71 an ounce. US gold futures fell 2.7 percent to $ 3328.10.

Corphen Wong, a chief market analyst for the Asia and Ocean -Pacific region of Onda, said that the hint of negotiations between the United States and China and Trump’s retreat from his threat to dismiss Powell caused the decline in gold prices.

American stocks and the dollar returned after Trump retreated yesterday, Tuesday, from his threats to dismiss Powell after days of intensifying criticism of the Central Bank President for not cutting interest rates.

The power of the dollar is made more expensive for buyers than other currencies.

Trump also expressed his optimism that reaching a trade agreement with Beijing may lead to a “large” reduction of customs duties on Chinese goods, hinting that the final agreement will not be “absolutely” close to current customs duties.

US Treasury Secretary Scott Bessent said he believed that the trade tension between the United States and China will be shattered, but negotiations with Beijing have not started and will be “strenuous.”

Neil Kackari, head of the Federal Reserve Bank in Minnesota, said it is too early to know the need to adjust short -term borrowing costs due to customs duties and its expected impact on inflation and economy.

The gold, which is a means of hedging in the case of global fog and inflation, yesterday, Tuesday, recorded a new high level, the twenty -eighth of this year, as it rose to $ 3500 for the first time.

JB Morgan said it is expected to exceed the gold prices of $ 4000 an ounce next year.

As for other precious metals, silver increased in instant transactions 0.4 percent to $ 32.64 an ounce, platinum fell 0.1 percent to $ 957.90, and palladium fell 0.5 percent to 931.51 dollars.