Gold rebounds as Trump abandons plans to dismiss Powell, boosting market sentiment.

On Thursday (April 24), during the early Asian trading session, spot gold slightly rebounded, currently trading near $3,312.36 per ounce, supported by bargain hunting. Previously, gold prices continued a downward trend from record highs on Wednesday, dropping nearly 3% to a low of $3,260.08 per ounce, eventually closing at $3,288.18 per ounce. U.S. President Trump indicated no intention to dismiss Federal Reserve Chairman Powell and hinted at progress with China on tariff issues, improving investor appetite for risk assets, leading to a rebound in the dollar and U.S. stocks, which put pressure on gold prices. Especially after encountering resistance at the $3,500 level, short-term profit-taking by bulls further weighed on gold prices.

Trump's decision to abandon the threat to fire Powell, along with eased trade tensions, provided relief to the market. The dollar rebounded against major currencies on Wednesday, with the dollar index rising by 0.94%, marking a two-day gain, reaching a high of 99.94, a one-week peak, and eventually closing at 99.90.

Refinitiv reported that informed sources revealed the Trump administration is considering reducing tariffs on imports from major Asian countries, stating any actions will not be unilateral. This news further boosted the dollar's exchange rate against the euro and Swiss franc. U.S. Treasury Secretary Steven Mnuchin also mentioned that if a trade agreement with major Asian countries is reached, tariffs could be significantly reduced, which instilled confidence in the market.

Helen Given, Director of Trading at Monex USA, stated, “Overall, people are relieved about potential negotiations between major powers, and this has had a significant impact on the market.” On Wednesday, Wall Street stocks in the U.S. surged, diminishing the demand for gold as a safe haven. The Dow Jones Industrial Average rose by 419.59 points, the S&P 500 Index climbed by 88.10 points, and the Nasdaq Index increased by 407.63 points.

Russell Price, Chief Economist at Ameriprise, pointed out, “President Trump has no intention of firing Powell, and we might see a significant reduction in tariffs on major Asian countries, which is good news the market has been expecting.” Phillip Streible, Chief Market Strategist at Blue Line Futures, stated, “The market is moving past the negative impact of tariffs, with funds broadly flowing into stocks like Apple and Tesla.”

Since the start of 2025, gold prices have risen by more than 26%, driven by central bank purchases, tariff war concerns, and strong investment demand. However, as profit-taking demands for long positions increase, gold faces the risk of further corrections. Ole Hansen, Head of Commodity Strategy at Saxo Bank, stated in a report, “Gold prices encountered a sharp reversal near $3,500, increasing the short-term risk of a pullback.”

On this trading day, investors need to focus on the preliminary U.S. March Durable Goods Orders month-on-month rate and the Initial Jobless Claims report until April 19. Additionally, international trade conditions and geopolitical developments remain key factors for market attention.

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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