Gold Prices Experience Significant Drop

After reaching a historic peak of $3,500, gold prices began to fall on Wednesday, marking a 3.13% decrease by midday. This shift comes as investors respond to optimistic developments in US-China trade relations and reduced concerns over Federal Reserve policies.

Trade Optimism Influences Market

US Treasury Secretary Scott Bessent highlighted the potential for decreased trade tensions with China, labeling the current tariff dispute as "unsustainable." Additionally, President Donald Trump's retraction of comments about removing Fed Chair Jerome Powell has eased market anxieties, contributing to the decline in gold prices.

Precious Metals Market Update

At 11:55 am ET, gold was trading at $3,275.94 per ounce, while silver saw a 1.20% increase to $32.90 per ounce. Platinum decreased by 1.51% to $974.66 per ounce, and palladium rose 1.04% to $931.30 per ounce.