Gold experiences a remarkable decline in a single day, plummeting by more than $100. Gold prices experienced a significant drop of $140 per troy ounce on Wednesday, marking the most substantial single-day decline in history, following indications from President Donald Trump that he might adopt a more lenient stance towards China concerning tariffs. A day prior, he stated that he was not contemplating the dismissal of Federal Reserve Chair Jerome Powell.
Gold was trading at $3,275.80 per troy ounce on the Comex, experiencing a decline of $143.60 or 4.20%. Gold has reached a lifetime high of $3,509.
Three factors contributing to today’s decline:
- Trump tariffs: President Trump today indicated that tariffs on China will not reach the previously suggested level of 145%, according to a report by Reuters.
- Reversal on Fed Chair: Trump stated that he has no intentions of dismissing Fed Chair Powell. “The comments of President Trump, including his softer stance towards the Fed chairman as well as his comments on China, eased some market concerns and weighed on the yellow metal,” another Reuters report stated, citing UBS analyst Giovanni Staunovo.
- Profit booking: Following an impressive rally that has resulted in a 25% increase in domestic prices in 2025, investors opted to realize some profits.