Gold falls as Trump backs down from threat to fire Fed chief

Anmol Choubey - Reuters - 06:48
Gold prices fell more than 1% on Wednesday as U.S. President Donald Trump backed down from threats to dismiss Federal Reserve Chair Jerome Powell and expressed optimism for a trade deal with China, denting bullion's safe-haven appeal.
  • Spot gold hit $3,500 per ounce on Tuesday
  • No plans to dismiss Fed's Powell, Trump says
  • Trump says China tariffs will fall substantially after a deal
April 23 (Reuters) - Gold prices fell more than 1% on Wednesday as U.S. President Donald Trump backed down from threats to dismiss Federal Reserve Chair Jerome Powell and expressed optimism for a trade deal with China, denting bullion's safe-haven appeal.
Spot gold fell 1.2% to $3,339.53 an ounce by 0428 GMT. U.S. gold futures fell 2% to $3,349.80.

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The hint of U.S.-China negotiations and Trump backing down his threat to remove Powell "caused the sell off in gold price to hit a kind of a very extreme oversold level in the short term perspective here," said Kelvin Wong, senior market analyst, Asia Pacific at OANDA.
U.S. stocks and the dollar rebounded after Trump on Tuesday withdrew his threats to fire Powell after days of intensifying criticism of the central bank chief for not cutting interest rates.
A stronger dollar m...
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