Golden reach-related as FED policy and Trump trading plans weigh on sentiment
Gold stays in a strict trade range, because markets the impact of the expectations of the Federal Reserve policy and renewed trade issues are linked to President Donald Trump’s economic agenda. Last week, traders saw a short -covered rally after the first rate threats, which gave gold 2.6% higher, near the record peak. However, making a profit at these levels has kept prices under control.
Monday’s sale in technological shares, caused by concern about the Chinese AI model Deepseek, led some investors to liquidate golden companies to cover losses. This added further short -term volatility to the price action of the metal. Now waiting for the clarity of the FED meeting, where investors also take into account the possibility of future rate reductions and a possible correction in stock markets.
The Federal Reserve is generally expected to keep the rates unchanged at 4.25%-4.50%, after 100 basic points of relaxation last year. Although the market has priced little chance of an immediate rate, FED chairman Jerome’s post-meeting comments will be crucial in shaping expectations for future policy movements.
Treasury proceeds were lower on Wednesday when investors took place before the decision, which were released for release at 19:00 GMT. The Powell press conference at 19:30 GMT will be closely followed later in the year on hints on inflation, economic growth and potential speed adjustments. Traders will be particularly sensitive to all indications for a shift in the position of the FED, because DOVISH signals in the bend can offer gold.
Trump’s tariff threats and political pressure contribute to market uncertainty
Trump adds a new layer of uncertainty, has repeated Trump plans to impose rates on Canada and Mexico, a movement that could feed inflation and complicate the decisions of the monetary policy of the FED. His repeated calls for lower interest rates expand the central bank further pressure, despite its mandate to act independently.
Former Kansas City Fed President Esther George emphasized that the FED should concentrate on price stability instead of political requirements. Now that Trump’s influence is growing, the markets are alert to possible disturbances that can stimulate the demand for a safe haven for gold.