Gold price enters second day of selling as Trump changes rhetoric
LONDON (April 23) Gold price (XAU/USD) heads towards $3,325 on Wednesday at the time of writing with second day of profit taking. The profit taking picked up on comments from United States (US) President Donald Trump, who did a 180-degree turn on his stance on China and the Federal Reserve (Fed). After the closing bell, Tesla’s (TSLA) Chief Executive Officer Elon Musk said he will reduce his role at the Department of Government Efficiency (DOGE).
President Trump rebuked earlier statements in which he was seeking to fire Fed Chair Jerome Powell to say now that he has no intention to fire him despite his frustration with the Fed not moving more quickly with the interest rate cuts, the Wall Street Journal reported. The president went on to say that he will be “very nice” to China in any trade talks and that tariffs will drop if the two countries can reach a deal. Final tariffs on China would not be near 145%, but much lower, he said, Bloomberg reports.
Daily digest market movers: Central Bank buying
- Gold has dipped in relation to Bitcoin this week, but its long-term trend of outperformance is expected to extend on demand for its safe-haven qualities. Investors will be expecting more sound bites from US leaders, which will muddy the outlook in the days ahead, Bloomberg reports.
- Central banks will keep buying Gold in a push to diversify from paper currencies amid the current political and economic upheaval, according to billionaire hedge-fund manager John Paulson, Reuters reports.
- “Gold’s tactically very overbought and extended - it’s risen $500 plus in 8 trading days, so naturally there’s likely a mix of a buyers’ pause and some risk reduction,” said Nicky Shiels, head of research and metals strategy at MKS Pamp SA, Bloomberg reports.
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