Trump Wants to Replace Powell, Gold Quietly Prepares to Explode?
The price of gold bars moved steadily on Thursday morning (6/26) in the Asian trading session, trading around $ 3,335 per ounce. This movement occurred after gold recorded a slight increase of 0.3% on Wednesday. Investors are now considering two main factors: the development of the ceasefire between Israel and Iran, and the latest signals regarding interest rate policy from the US central bank, The Federal Reserve. President Donald Trump said that the Israel-Iran conflict is "basically over", although there are still warnings that tensions could re-emerge.
Fed Chairman Jerome Powell said that there is still difficulty in mapping the impact of tariff policy on inflation. This provides room for the possibility of a faster interest rate cut, if price pressures remain weak. Interest rate cuts are usually good news for gold, because this precious metal does not provide an unbalanced interest rate yield and tends to be more attractive when interest rates are low. On the other hand, monetary policy is getting bigger after reports that Trump might appoint Powell's replacement in September or October.
The current condition of the gold market is also influenced by investors' interest that is starting to be cautious, especially since the price of gold has jumped more than 25% since the beginning of the year but has been restrained in recent months. Gold is currently printing about $160 below its record high reached in April. However, purchases from global central banks and expectations of monetary easing continue to provide support for prices.
In addition to gold, other precious metals also showed strength. Silver, palladium, and platinum each rose in trading this morning. Meanwhile, the Bloomberg Dollar Spot Index fell 0.2%, providing additional support for gold prices. With geopolitical conditions and interest rate policies continuing to develop, the precious metals market is expected to remain sensitive to statements by top US officials and conflict developments in the Middle East in the coming days.
Source: (ayu-newsmaker)
