Trump's Attitude Takes a Sudden Turn! Gold Prices Surge and Fall Back—Has It Really Topped Out?

TradingKey - Trump's stance on tariffs and the Fed has softened. Gold prices have dropped and may fall to $3,000.

During the Asian session on Wednesday, President Trump’s comments on tariffs and Powell weakened safe-haven demand. Spot gold (XAUUSD)fell over 1%, hitting a low of $3,315 per ounce.

Spot gold price trend chart. Source: TradingView.

On Tuesday, during the swearing-in ceremony for SEC Chair Atkins, Trump expressed disappointment over the Fed not cutting rates faster. However, he stated he has no plans to fire Chairman Powell. He told reporters, "The media always messes things up. I’m not planning to fire him. I want to see him more aggressive on rate cuts."

Additionally, the White House announced progress in tariff agreements with Japan and India, though final deals may take months. Trump's tone toward China has softened. He clarified that tariffs on Chinese goods won't reach 145% and will decrease significantly, but won't drop to zero.

This shift in Trump's attitude has reduced market risk aversion, boosting the dollar and U.S. stocks, while putting pressure on gold prices. In the previous trading session, gold surged to $3,500 before retreating. Currently, multiple technical indicators like RSI and MACD suggest gold is overbought, indicating a potential pullback to around $3,000.