"Golden Turmoil" Soars to the Top of the Hot Search: A Sudden Plunge in Gold Prices

 "Golden Turmoil" Soars to the Top of the Hot Search: A Sudden Plunge in Gold Prices

 

On the morning of April 23rd, the topic of "Golden Turmoil" once soared to the top of x hot search list. After a significant surge, gold prices took a sudden dive. In the early Asian trading session on Wednesday, spot gold plummeted, touching a low of $3312 per ounce. Prior to this, gold prices had been on a strong upward trajectory, continuously hitting new all - time highs.

 

The immediate trigger for this upward movement in gold prices was Trump's latest criticism of Powell on social media. Trump called Powell "Mr. Too Late," suggesting that he had been slow to respond to the economic slowdown. This criticism sparked intense concern in the market about the Fed's policy independence. Powell had previously emphasized in public that the independence of monetary policy "is a legal matter."

 

On the 22nd local time, President Trump of the United States stated that he had no intention of firing Fed Chairman Powell, although he was disappointed that the Fed had not cut interest rates more quickly. Trump said, "We believe the Fed should lower interest rates; now is a perfect time." Analysts believe that such statements have reduced the risk of a drastic shift in the Fed's monetary policy and alleviated external concerns about the Fed's policy independence, thus dealing a short - term blow to gold bulls.

 

Despite the pullback on Wednesday, the overall trend of gold remains strong. As of the time of writing, London gold has rebounded to $3372 per ounce. Alexander Zumpfe, a precious metals trader at Heraeus Metals, pointed out: "Currently, investors' concerns about political interference in monetary policy are becoming a key variable driving gold prices." He said that the recent technical support levels for gold are at $3450 and $3400 per ounce, and the current upward momentum may continue to push gold prices towards $3600.

 

Rania Gule, an analyst at XS.com, said: "The current upward trend in gold is not driven by short - term sentiment but rather reflects the market's reassessment of the stability of the global political and economic systems." Michael Brown of Pepperstone added that against the backdrop of intensifying domestic policy games in the United States, gold, as a "stable - state asset" immune to public opinion fluctuations, has had its hedging value re - evaluated by the market. Analysts believe that in the short term, gold prices will still fluctuate around uncertainties such as the Fed's policies, US political games, and geopolitical situations. In an environment of still - abundant liquidity, the structural upside potential for gold has not been closed off.