Safe-Haven Sentiment Retreats, Gold Price Pulls Back

Market Overview

On Wednesday, the Dollar Index continued its rebound as Trump and Mnuchin offered optimistic signals regarding trade negotiations, ultimately closing up 0.932% at 99.9. U.S. Treasury yields showed mixed movements. Retreating safe-haven demand and a stronger dollar led to a sharp drop of over $100 in spot gold, briefly touching the $3260 level before finally closing down 2.77% at $3288.44 per ounce. Bucking the trend in gold, spot silver's performance diverged due to boosted demand prospects, ultimately closing up 3.29% at $33.55 per ounce.

Key Developments to Watch

• Why Did Trump Suddenly Give Powell a Pass？ This Tuesday, Trump publicly stated he had no plans to fire Powell. Media outlets reported that this decision partly stemmed from private warnings to Trump from Treasury Secretary Mnuchin and Commerce Secretary Mnuchin, cautioning that removing Powell could trigger market turmoil and legal challenges. Mnuchin also reportedly indicated that even if Powell were dismissed, other Federal Reserve members might maintain similar monetary policies.

• White House Says Trump Intends to Exempt Some Auto Manufacturers from Tariffs The White House confirmed to the media on Wednesday reports that Trump plans to exempt certain auto parts from tariffs. These exemptions include tariffs on steel and aluminum but do not extend to the 25% tariff on imported complete vehicles, nor do they affect the 25% tariff on auto parts scheduled to take effect on May 3rd. Analysts interpret this as another pullback by Trump on his most aggressive tariff policies.

Key Focus

8:30 AM ET US Initial Jobless Claims for the Week Ending April 19th (in thousands) US Durable Goods Orders MoM for March

10:00 AM ET US Existing Home Sales Total Annualized for March (in thousands)

10:30 AM ET US EIA Natural Gas Storage Change for the Week Ending April 18th (in billion cubic feet)