Analysts expect a strong comeback for gold despite the decline.. interest rates and policy are shaping the scene!

Gold prices have experienced a temporary decline, falling below the $3,300 per ounce level. This drop followed a decrease in the intensity of statements from U.S. President Donald Trump regarding both tariffs on China and the possibility of dismissing Federal Reserve Chairman Jerome Powell. This was indicated in a report by foreign exchange analyst at Commerzbank, Tho Lan Nguyen, who confirmed that the decline was temporary due to ongoing geopolitical and economic concerns.

Despite this decrease, markets remain cautious regarding the Chinese file, especially amid conflicting statements from Trump and U.S. Treasury Secretary Steven Mnuchin on one side, and Chinese leadership on the other, regarding the chances of reaching a trade agreement soon. This ambiguity strengthens the continued demand for gold as one of the major safe havens during economically turbulent times.

In this context, statements from several Federal Reserve members have played a role in supporting gold prices, particularly comments from Federal Reserve member Christopher Waller, who indicated the possibility of accelerating rate cuts if trade escalation leads to a significant deterioration in the labor market. Beth Hammack, President of the Federal Reserve Bank of Cleveland, also predicted that the first interest rate cut could take place in June if data continues to indicate weak growth.

Although market expectations regarding interest rate policy have not changed significantly yet – as most investors are still anticipating the first cut during the summer – an overall improvement in sentiment enhances gold's attractiveness and gives it a positive boost.

Investors are now focusing on the upcoming economic data from the United States, where any signs of economic slowdown resulting from ongoing tariffs will have a direct impact on gold prices. If this slowdown is confirmed, prices are likely to see a rapid increase in the near future.