Gold prices dropped on Wednesday because U.S. President Donald Trump decided not to fire Federal Reserve Chair Jerome Powell and hinted that trade tensions with China might ease. This made gold less appealing as a “safe-haven” investment.
– Current Prices: Spot gold decreased by 1.2% to $3,340.92 per ounce. U.S. gold futures also fell by 2% to $3,349.20.
– Trump’s Comments: Trump seems hopeful about a trade deal with China that could lower tariffs (taxes on imported goods).
– Scott Bessent’s Statement: Treasury Secretary Scott Bessent says he thinks the U.S.-China trade situation will calm down, but talks are still difficult and have not started yet.
– Impact on the Dollar: After hitting a three-year low, the dollar became stronger, making gold more expensive for people using other currencies.
– Historic Gold Records: Gold, which is often bought when people are worried about the economy and inflation, reached a record high of $3,500 per ounce on Tuesday.
– Future Predictions: JP Morgan predicts that gold might go above $4,000 an ounce next year.
Other metal prices: Spot silver went up by 0.2% to $32.58 an ounce. Platinum fell by 0.6% to $952.65, and palladium dropped by 0.4% to $931.91.
### Data/Events (in GMT):
– 0030: Japan’s JibunBK Manufacturing PMI Flash
– 00430: Japan’s Tertiary Industry Activity
– 0715: France’s Manufacturing and Services PMI Flash
– 0730: Germany’s Manufacturing and Services PMI Flash
– 0800: EU’s Manufacturing and Services PMI Flash
– 0830: UK’s Flash Composite and Manufacturing PMI
– 0900: EU Total Trade Balance
– 1345: U.S. S&P Global Manufacturing and Services PMI Flash
– 1400: U.S. New Home Sales Units
Gold Prices Fall; Trump Eases Fed and Trade Tensions
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