By Rahul Paswan
(Reuters) – Gold prices dipped on Wednesday after U.S. President Donald Trump hinted at lower tariffs for China and backed away from threats to fire Federal Reserve Chair Jerome Powell.
Spot gold was down 1.6% at $3,328.48 an ounce as of 0949 GMT, after hitting a record high of $3,500.05 in the previous session. U.S. gold futures dropped 2.3% to $3,340.60.
“The comments of President Trump, including his softer stance towards the Fed chairman as well as his comments on China, eased some market concerns and weighed on the yellow metal,” said UBS analyst Giovanni Staunovo. [MKTS/GLOB] [USD/]
“We continue to expect gold to rise to $3,500/oz over the coming months,” Staunovo said.
President Trump backed off from threats to fire Fed Chair Powell after days of intensifying criticism of the central bank chief for not cutting interest rates.
He also expressed optimism that he would make progress with China that would substantially lower tariffs on their imports but also warned that “if they don’t make a deal, we’ll set the deal”.
Meanwhile the International Monetary Fund on Tuesday slashed its outlook for both U.S. and global growth this year, with Trump’s tariffs policy the central reason behind the downgrade.
Gold, traditionally considered a hedge against global instability, has shattered multiple record highs and gained more than 26% since the start of 2025.
JPMorgan said it expects to see gold prices crossing the $4,000 an ounce milestone next year.
It also predicted greater headwinds for silver in the near term given industrial demand uncertainty, while a “catch-up window” will open over the second half of 2025, with prices set to rise towards $39 and ounce by 2025-end.
Spot silver rose 1.1% to $32.88 an ounce. Platinum was up 0.7% at $965.64 and palladium gained 0.6% to $941.55.
(Reporting by Rahul Paswan in Bengaluru; Editing by Tom Hogue and Jan Harvey)
