In a notable reversal of recent market momentum, gold prices retreated from record levels following a surprise political de-escalation by President Trump. Investors rebalanced their portfolios as Trump’s softened rhetoric on central bank leadership and international trade helped stabilize global sentiment.
Earlier this month, gold reached historic highs amid rising geopolitical strain and fears of executive overreach in U.S. monetary policy. President Trump’s aggressive posture toward Federal Reserve Chair Jerome Powell, coupled with intensifying trade tensions, spurred a flight to traditional safe-haven assets like gold.
However, in a press briefing Tuesday night, Trump reversed his tone, affirming support for the Federal Reserve’s independence and suggesting a renewed willingness to engage in constructive dialogue with China. The move signaled to markets that the risk of institutional disruption and trade fragmentation had diminished—at least for now.
In reaction, spot gold prices slid nearly 2% to $3,318 per ounce, with futures following suit. At the same time, equity indices worldwide turned higher, led by gains in Asia and improved futures outlooks in the U.S.
Silver prices held steady with a slight uptick, while platinum and palladium saw minor losses. Despite gold’s retreat, analysts believe that macroeconomic headwinds—including debt burdens, inflation concerns, and geopolitical uncertainties—may keep gold well-supported over the medium term.
