By Anmol Choubey
(Reuters) – Gold prices fell on Wednesday while US President Donald Trump retracted his threats to reject the president of the Federal Reserve, Jerome Powell and expressed his optimism for a trade agreement with China, the Houle call for the Bullion safe.
Gold at point dropped by 0.7% to $ 3,57.11 per ounce of 0256 GMT. US Gold term contracts dropped by 1.5% to $ 3,366.80.
The suspicion of American-Chinese and Trump negotiations withdrawing his threat from withdrawing Powell “made the sale of Gold Price have reached a sort of very extreme level of occurrence in short-term perspective here,” said Kelvin Wong, main market analyst, Pacific Asia in Oanda.
American shares and the dollar rebounded after Trump on Tuesday withdrawn his threats to dismiss Powell after days of intensification of criticism from the Central Bank chief for not having reduced interest rates. (MKTS / GLOB) (USD /)
A stronger dollar makes gold more expensive for foreign buyers.
Trump also expressed his optimism that a trade agreement with China could “considerably” reduce “the prices on Chinese goods, suggesting that the final agreement will not be” near “current prices.
The American secretary of the Treasury, Scott Bessent, said that he thought there would be a de-escalation in American-Chinese trade tensions, but negotiations with Beijing have not yet started and would be a “slog”.
“There is not yet a form of bullish exhaustion of the level of the higher bond, so there could still be an upward potential movement for gold,” said Wong d'Onada.
The president of the Fed Bank of Minnesota, Neel Kashkari, said that it was too early to find out how short -term borrowing costs may need to be adjusted for Trump prices and their expected impact on inflation and the economy.
Gold, considered as a coverage against uncertainty and global uncertainty, reached its 28th record this year on Tuesday, going to $ 3,500 for the first time.
JP Morgan said he expects to see the golden prices crossing the milestone of $ 4,000 per ounce next year.
Signing silver increased by 0.5% to $ 32.67 per ounce, the plate released 0.2% to $ 956.53 and the palladium lost 0.2% against $ 933.72.
(Report by Anmol Chowby and Anushree Mukherjee in Bengali; edition by Sumana Nandy and Varun HK)
