Gold Prices Decline After Trump's Softened Economic Position

Gold prices fell sharply on Wednesday after U.S. President Donald Trump softened his stance toward both the Federal Reserve and China, reducing the metal’s safe-haven appeal. Trump reversed earlier threats to dismiss Fed Chair Jerome Powell and signaled optimism about a potential trade deal with China, suggesting that tariffs could be substantially reduced if an agreement is reached. These moves reassured investors, leading to a stronger dollar and prompting some profit-taking after gold recently reached a record high above $3,500 per ounce. Despite the pullback, analysts maintain a bullish long-term outlook, with forecasts of gold potentially surpassing $4,000 per ounce next year. Some experts note that there are no clear signs of bullish exhaustion yet, suggesting the possibility for further upward movement, although short-term volatility is expected. In the broader precious metals market, silver and other metals showed mixed performance amid changing economic signals.