Gold prices dropped sharply on Wednesday following fresh remarks from U.S. President Donald Trump. His latest comments calmed markets and led investors to pull back from the yellow metal.
Trump expressed no intention to remove Federal Reserve Chair Jerome Powell, reversing earlier criticism. This shift in tone reassured investors, causing gold to lose some momentum. Additionally, Trump suggested potential tariff reductions on Chinese imports, raising hopes for improved trade relations.
Spot gold declined by 2.1%, landing at $3,310.29 an ounce by 0811 GMT. Just one day earlier, it had touched a record $3,500.05. Meanwhile, U.S. gold futures also fell, dropping 2.9% to $3,321.30.
UBS analyst Giovanni Staunovo linked the drop to Trump’s remarks. He noted that lower trade tensions and a stable Fed outlook reduced demand for gold. Despite the drop, Staunovo still expects gold to climb to $3,500 per ounce in the coming months.
Trump’s softened stance came after several days of harsh criticism toward Powell. Yet now, he says Powell’s position is secure. Trump also expressed confidence about trade talks with China. He claimed a deal could emerge soon, possibly cutting tariffs significantly. However, he warned that failure to reach a deal would trigger tougher measures.
On Tuesday, the International Monetary Fund slashed its economic growth forecasts. Both U.S. and global projections took a hit, with Trump’s tariff policies cited as key factors.
Although gold dipped, many experts believe its rally will continue. JP Morgan predicts gold could surpass $4,000 per ounce in 2026. They highlighted economic uncertainty as a driving force behind that estimate.
Gold remains a safe-haven asset in times of global instability. Despite short-term losses, long-term demand still appears strong.
Silver moved in the opposite direction, gaining 1% to hit $32.85 per ounce. Meanwhile, platinum rose 0.6% to $964.35. Palladium held steady at $935.48.
Ultimately, as market conditions fluctuate, gold remains a safe-haven asset. Investors continue watching for signs of economic clarity. Gold remains a safe-haven asset when uncertainty shakes global markets.
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