NEW YORK (Scrap Register): Analysts with Commerzbank said “we cannot understand why” gold fell Tuesday considering the political and geopolitical risks, especially with the “increasingly belligerent rhetoric” between Ukraine and Russia.
U.S. President Donald Trump has raised doubts about whether a meeting with Russia’s president will occur during an upcoming Group of 20 summit, which “should really add to the uncertainty,” Commerzbank added.
Analysts said Trump’s most recent remarks criticizing the Federal Reserve included “pithy language,” with Trump saying that the Fed is “a much bigger problem than China” and adding that he is “not even a little bit happy” that he chose Powell as the central bank’s chairman.
“This was also water off a duck’s back to gold, however,” Commerzbank noted. “Gold was pulled down by the firm U.S. dollar, which appreciated when the Fed’s Vice Chair [Richard] Clarida talked yesterday of a gradual normalization of monetary policy.”