Tuesday, 22 July 2025
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Gold price falls below $3,400 despite increased risk aversion
Tuesday, 22 July 2025 15:42 WIB | GOLD |GOLD

Gold price (XAU/USD) edges lower on Tuesday after two days of gains. However, the price of the safe-haven metal may appreciate due to prevailing uncertainty ahead of US President Donald Trump's August 1 tariff deadline. Additionally, market sentiment deepens due to increasing worries about the Federal Reserve's (Fed) independence.

Traders keep their eyes on the trade negotiations between the United States (US) and the European Union (EU) this week, expecting to finalize a trade deal before the August 1 deadline, when Trump has threatened to hit the bloc's exports with 30% tariffs. The EU is exploring a broader set of possible counter-measures against the US as prospects for an acceptable trade agreement with Washington fade, Reuters cited EU diplomats.

US Treasury Secretary Scott Bessent said the Fed's independence on monetary policy is under threat by its "mandate creep" into non-policy areas. Bessent urged the central bank to undertake a comprehensive review of those activities. He also called for a reassessment of the Fed as an institution. President Trump's renewed criticism of Fed Chair Jerome Powell for not lowering interest rates has intensified speculation about a possible dismissal.

Source: Fxstreet

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