Gold plunges as Trump backs off Powell and China [Video]

The price of Gold continued to fall on Wednesday, as market volatility eased following recent comments from President Trump.

XAU/USD raced to a record high of $3,500 during Tuesday’s session after Trump stated that Fed Chair Powell’s “termination cannot come fast enough”. The President also suggested that Powell should immediately cut rates, despite the Federal Reserve refraining from any immediate policy change.

This led markets to question the Fed's independence and the potential for intervention by the Trump administration, leading to a selloff of US stocks.

However, Trump elaborated on his comments, saying, “I have no intention of firing Powell” and “never did.” This helped elevate prior concerns, with investors moving away from their Gold positions in the process.

Trump also alluded to softening his stance on Chinese tariffs, saying that the current 145% rate is “extremely high” and “will drop significantly, but it will not be zero”.

Gold has been trading down $200 since its peak, and as of writing is trading at $3,298.

Bitcoin races to seven-week high on Wednesday

Bitcoin moved above $94,000 for the first time since March 3, as bulls returned to the cryptocurrency.

News that President Trump could be open to lowering tariffs on China helped boost market confidence across the board.

Today’s move saw BTC/USD hit a long-term resistance level of $94,350 before losing momentum.

The world’s largest cryptocurrency has been trading below $100,000 since early February, due to concerns over the global economic slowdown.

Despite President Trump adopting pro-crypto policies, wider market volatility has resulted in investors moving away from risk assets.