Gold Slips, Equities Surge As Trump Backs Off From Attacks On Powell

Gold prices in the spot market tumbled 3% on Wednesday after President Donald Trump eased his attacks on Federal Reserve Chair Jerome Powell.

Gold was trading at $3,280 an ounce in the spot market at the time of writing.

Trump’s change of heart regarding the Fed Chair was reflected not just in a decline in gold prices on Wednesday, but also in the rally in equities.

Gold prices tumbled to as low as $3,260 during Wednesday’s trading session, reflecting a decline of 3.6% over Tuesday’s closing price.

While gold saw a dramatic surge of 9.5% in April until Tuesday, the yellow metal’s returns now stand at a shade over 5% for the month.

Trump had initially called Powell’s rate actions “too late and wrong” last week, and later called him a “major loser.”

However, on Tuesday, the President clarified that he has no intention of firing Powell, despite previously wishing that his termination couldn’t come soon enough.

Trump emphasized that he wants the Fed chair to be a “little more active” in pursuing the idea of an interest rate cut.

The President’s softening stance reflected in increased investor confidence on Wall Street, with the Dow Jones gaining 1.31%, the S&P 500 rising nearly 2.00%, and the tech-heavy Nasdaq 100 index surging 2.81% at the time of writing.

Analysts, however, are optimistic on the yellow metal’s prospects – JPMorgan expects gold to hit the $4,000 level by the second quarter of 2026. Goldman Sachs expects gold to touch $3,700 by the end of 2025.

The SPDR Gold Shares ETF (GLD) was down 2.80% at the time of writing.

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