Market Uncertainty and Gold Volatility: Trump's Fed Comments ShaThis week, the market has been rife with uncertainties. Former President Trump’s repeated criticisms of Fed Chair Powell—particularly regarding the pace of interest rate cuts—even raised speculation about Powell’s potential dismissal, triggering widespread market turbulence. On April 22, Trump clarified that he had no intention of firing Powell while reiterating his call for further rate cuts and praising the stock market's gains. This statement helped alleviate concerns about the stability of the Fed’s leadership.
Gold reacted sharply to these developments, experiencing wild swings on Tuesday that reflected rapidly shifting market sentiment. The precious metal’s movements remain tightly linked to geopolitical and economic headlines, with Trump’s tariff policies and rhetoric fueling safe-haven demand and driving capital into gold. However, caution is warranted—once risk appetite rebounds, prices could face a pullback. Although the daily candle swallowed the previous day’s bullish surge, a unilateral downtrend has yet to form.
Following Tuesday’s steep decline, $3,500 has been confirmed as a short-term peak, with safe-haven demand easing slightly. Gold opened lower on Wednesday at $3,312 before rebounding to $3,386, but failure to sustain upward momentum could invite renewed selling pressure, potentially pushing prices back toward $3,330. Key resistance now stands at $3,400–3,410, with support at $3,310–3,300. Analyst Xu Gucheng recommends a strategy of prioritizing short positions on rallies and considering longs on dips.
Trading Strategy 1: Buy on dips at $3,307–3,300, stop loss at $3,293, target $3,340–3,380.
Trading Strategy 2: Sell on rallies at $3,405–3,410, stop loss at $3,421, target $3,370–3,340.
