Gold Prices Weaken, Market Anxiously Awaits Powell's Fate
Gold prices experienced a slight weakening on Wednesday (July 17th), following a volatile trading session. What caused this? Market participants were weighing the possibility of a leadership change at the US central bank, following rumors that President Donald Trump might fire Jerome Powell from his position as Fed Chair. This issue has sparked renewed uncertainty in financial markets.
Although a White House official initially stated that Trump might pursue Powell's dismissal, the President later reassured the market by saying he had "no plans to do anything" about it. However, concerns about political interference remain. If Powell is indeed dismissed before his term ends in 2026, this could raise doubts about the Fed's independence.
The price of gold bullion briefly touched $3,330 per ounce after previously rising 0.7%. The precious metal has actually risen more than 25% so far this year, driven by geopolitical tensions, trade conflicts, and buying from central banks and ETFs. However, at 4:26 PM Singapore time, gold prices fell 0.5% to $3,331.34 per ounce, while the Bloomberg Dollar Index rose 0.3%.
Besides gold, other metal commodities also experienced pressure. Platinum and palladium prices, which had risen more than 3% the day before, also experienced corrections. Currently, investors are tending to be cautious while awaiting further developments regarding Powell's future and the direction of US monetary policy.
Source: (ayu-newsmaker)
