Gold prices experienced a correction, declining from a peak of $3,357, following remarks by Federal Reserve Chair Jerome Powell regarding potential conflicts between the Fed’s dual mandate, thereby raising concerns about stagflation. Market performance was mixed, with the Dow Jones Industrial Average declining due to a significant decrease in UnitedHealth Group’s stock value, while other major indices registered moderate gains. Former President Trump indicated potential advancements in trade negotiations with both the European Union and China. The European Central Bank (ECB) implemented a 25 basis point rate reduction, further diverging global monetary policies. Gold’s retreat on Thursday, preceding the Good Friday holiday, amounted to a 0.60% decrease, partially offsetting gains of approximately $400 observed over the preceding seven trading sessions, driven by uncertainties surrounding US trade policies. The precious metal traded at $3,319 after reaching the aforementioned record high. Market sentiment at the close of the week’s final trading day was varied, with two of the three primary US indices showing positive results. Powell’s statements on Wednesday continue to be analyzed by market participants. His commentary suggested a more hawkish stance, acknowledging the possibility of a stagflationary environment should economic weakness coincide with elevated inflation, potentially hindering the central bank’s objectives.
