Gold rate prediction for near term is under question as gold price has crashed. Precious metals prices tumbled after surging in recent days when investors sought a safe haven over doubts about Trump's policies. Gold price fell as much as 12 percent at one point, retreating below $5,000 an ounce after hitting a record high near $5,600 on Thursday.
Gold is the classic safe haven: an asset people buy to protect their savings when worried about financial risks.
With international political tensions rising, trade war threats, shifting signals about where interest rates are heading and a potential changing world order, investors are seeking assets that feel stable when everything else looks shaky.
Friday’s crash in gold and silver was sparked by financial markets reacting to early news of Donald Trump’s nomination of Kevin Warsh as chair of the US Federal Reserve. The US central bank plays a key role in global financial stability.
Central banks around the world have been buying gold at a rapid pace, reinforcing its reputation as a place to park value during periods of uncertainty.
The bearishness in precious metals came as US President Donald Trump nominated Kevin Warsh as the next Federal Reserve chair which fuelled a recovery in the US dollar.
Analysts said Warsh would be less supportive of lower interest rates due to his hawkish stance on inflation control and emphasis on Fed independence, which prompted selling among precious-metals traders.
"US dollar strengthened, real yields rose and leveraged positions in gold and silver viewed as overextended debasement hedges unwound swiftly. This resulted in violent liquidation, erasing billions in market value and flushing out weak hands in a classic euphoria-to-exhaustion phase rather than signalling a structural bear market reversal," analysts noted.
However, they maintained that structural supply deficits and industrial demand continue to underpin the bullish bias. "Relentless central bank gold accumulation, silver's structural supply deficits amid surging industrial demand from green energy, EVs, AI and electronics" support the long-term positive outlook, they said.
Kathleen Brooks, research director at XTB trading group, said the "interesting pick...may give the market some hope that Fed independence will be preserved."
Trump's personal attacks on Fed boss Jerome Powell -- set to depart in May -- have fueled widespread fears among investors that the central bank's policy independence is under threat, potentially posing an inflation risk to the US economy.
Gold Rate
Gold is the classic safe haven: an asset people buy to protect their savings when worried about financial risks.
With international political tensions rising, trade war threats, shifting signals about where interest rates are heading and a potential changing world order, investors are seeking assets that feel stable when everything else looks shaky.
Friday’s crash in gold and silver was sparked by financial markets reacting to early news of Donald Trump’s nomination of Kevin Warsh as chair of the US Federal Reserve. The US central bank plays a key role in global financial stability.
Central banks around the world have been buying gold at a rapid pace, reinforcing its reputation as a place to park value during periods of uncertainty.
Gold Price Prediction
The bearishness in precious metals came as US President Donald Trump nominated Kevin Warsh as the next Federal Reserve chair which fuelled a recovery in the US dollar.
Analysts said Warsh would be less supportive of lower interest rates due to his hawkish stance on inflation control and emphasis on Fed independence, which prompted selling among precious-metals traders.
"US dollar strengthened, real yields rose and leveraged positions in gold and silver viewed as overextended debasement hedges unwound swiftly. This resulted in violent liquidation, erasing billions in market value and flushing out weak hands in a classic euphoria-to-exhaustion phase rather than signalling a structural bear market reversal," analysts noted.
However, they maintained that structural supply deficits and industrial demand continue to underpin the bullish bias. "Relentless central bank gold accumulation, silver's structural supply deficits amid surging industrial demand from green energy, EVs, AI and electronics" support the long-term positive outlook, they said.
Kathleen Brooks, research director at XTB trading group, said the "interesting pick...may give the market some hope that Fed independence will be preserved."
Trump's personal attacks on Fed boss Jerome Powell -- set to depart in May -- have fueled widespread fears among investors that the central bank's policy independence is under threat, potentially posing an inflation risk to the US economy.
