Background on Key Figures and Institutions
Donald Trump, the President of the United States, has been a significant figure in global politics since his election in 2016. His policies, including trade tariffs and monetary policy decisions, have had substantial impacts on the global economy. Jerome Powell, the Chair of the Federal Reserve (the central banking system of the U.S.), has been a critical player in shaping U.S. monetary policy.
Trump’s Shift in Stance and Its Impact on Gold Prices
On this particular Wednesday, gold prices were falling by 1.6% to $3,328.48 per ounce following a high of $3,500.05 the previous day. This decline came after President Trump hinted at reducing tariffs on China and backed off his threats to fire Jerome Powell, the Federal Reserve Chair.
Trump’s more moderate stance towards Powell and his optimistic outlook on reaching trade deals with China were factors that eased market concerns, thereby affecting gold prices negatively.
“We still expect gold to reach $3,500 per ounce in the coming months,” said Giovanni Staunovo, an analyst at UBS. However, the recent price drop indicates a temporary setback.
Global Economic Perspective
The International Monetary Fund (IMF) recently downgraded its growth projections for both the U.S. and global economies this year, citing Trump’s trade policies as a primary reason for the revision.
Gold, traditionally viewed as a safeguard against global instability, has seen multiple historical highs and has increased by over 26% since early 2025. JPMorgan predicts that gold prices could surpass $4,000 per ounce next year.
Impact on Other Precious Metals
While gold prices fell, silver saw a 1.1% increase to $32.88 per ounce. Platinum added 0.7% to reach $965.64, and palladium gained 0.6% to hit $941.55.
Key Questions and Answers
- Who are the key figures mentioned? President Donald Trump and Jerome Powell, Chair of the Federal Reserve.
- What caused the drop in gold prices? Trump’s shift in stance towards Powell and his optimistic outlook on trade deals with China eased market concerns, negatively impacting gold prices.
- How have global economic institutions responded to Trump’s trade policies? The International Monetary Fund has downgraded growth projections for both the U.S. and global economies this year, citing Trump’s trade policies as a primary reason.
- What are JPMorgan’s predictions for gold prices? JPMorgan expects gold prices to surpass $4,000 per ounce next year.
- How have other precious metals been affected? Silver prices increased by 1.1%, platinum added 0.7%, and palladium gained 0.6% following the drop in gold prices.
