Trump’s Optimism Weighs on Gold, But Analysts Still See Upside

In Brief:

Gold fell up to 2% after Trump softened stance on Powell and China trade.

Analysts say current drop is short-term and gold may rebound from oversold levels.

Spot gold prices slid by as much as 2% during the Asian trading session on April 23, triggered by a shift in tone from former U.S. President Donald Trump. The drop follows Trump’s positive remarks about a potential trade deal with China and his decision to back away from threats to remove Federal Reserve Chair Jerome Powell.

These developments reduced gold’s safe-haven appeal in the short term, prompting a wave of selling. Market observers noted a sharp move down as investor demand shifted toward risk-on sentiment.

Despite the decline, analysts remain optimistic. Kelvin Wong, senior market analyst at ONG Asia Pacific, stated that gold is now in an “extremely oversold” position. He emphasized that current resistance levels do not indicate any signs of bullish exhaustion—leaving room for a potential rally ahead.

While macro headlines may continue to influence short-term price action, many still view gold’s broader trend as intact amid ongoing global uncertainty.

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