Gold prices, after reaching a historic high of over $3,500 per ounce, are set to decline for the second consecutive day as investors take profits. This comes amid a softened stance by U.S. President Trump towards Federal Reserve Chairman Powell. Spot gold fell by 1.9% during early Asian trading, following a 1.3% drop after briefly touching a record high of $3,500.10.
The renewed risk appetite has led to a strong rebound in U.S. stock markets, with the dollar stabilizing. Previously, Trump's aggressive tariff policies, escalating geopolitical tensions, and concerns over the U.S. economic outlook had driven gold prices up. The 14-day relative strength index for gold indicated an overbought condition, prompting profit-taking by investors.
On Tuesday, Trump expressed disappointment over the Federal Reserve's delayed rate cuts but stated he does not intend to dismiss Chairman Powell.
