Gold Falls to $3300, Oil Sinks 16% as Trump Attacks Israel, Iran and Jay Powell on TruthSocial
Tuesday, 6/24/2025 14:50
GOLD and OIL both sank to 2-week lows against a fast-falling US Dollar on Tuesday, with the 'safe haven' precious metal testing $3300 per ounce after President Trump used his TruthSocial platform to announce a ceasefire in the Middle East, to lambast both Iran and Israel for breaking it, and to call for Congress to "work over" Federal Reserve chair Jerome Powell for not cutting US interest rates.
"Europe has had 10 cuts, we have had ZERO," said the latest tweet from
Trump attacking the Powell Fed.
"No inflation, great economy - We should be at least two to three points lower. Would save the USA 800 Billion Dollars Per Year, plus"
in debt interest costs.
"I hope Congress really works this very dumb, hardheaded person, over," the President added ahead of Powell delivering today's regular testimony to lawmakers on Capitol Hill.
"We will be paying for his incompetence for many years to come."
Dropping to $3300 as New York opened Tuesday, Dollar-priced gold had fixed around $3320 at London's 10:30am benchmarking auction − down 1.8% from yesterday's 3pm price with its steepest such drop since mid-May − after Trump ordered Israel in a TruthSocial tweet to turn around bomber planes heading for Iran ahead of today's ceasefire deadline.
Crude oil fell harder, sinking to $68 per barrel of global benchmark Brent to erase all of the past 2 weeks' jump and losing 16.7% from Monday morning's new 4-month high, hit after
the weekend's US 'bunker buster' bomb attacks on three of Iran's nuclear research sites.
New York's stock markets then opened the day 0.8% higher, following global equities upwards, while Western government debt also rose in price, edging longer-term borrowing costs lower following Trump's latest attack on the US Fed, and helping the TLT ETF of US Treasury bonds tick up towards break-even for 2025 to date.
"You know what we have?" a visibly angry Trump asked reporters in Washington this morning after
telling Jerusalem to "bring home your pilots now!" on TruthSocial.
"We basically have two countries that have been fighting so long and so hard that
they don't know what the f*** they're doing."
With the Dollar falling hard on the currency market, gold priced in Sterling sank to 4-week lows beneath £2430 and Euro gold plunged to its lowest in almost 6 weeks at €2847 as the single currency jumped towards early June's 44-month highs near $1.17.
"Should inflation pressures remain contained, I would support lowering the policy rate as soon as our next meeting," said Fed Government Michelle Bowman on Monday, echoing comments made on Friday by fellow Trump appointee Christopher Waller.
"We're in a good spot right now for talking about bringing the rate down," said Waller, just 2 days after the Fed voted to hold overnight rates at 4.33% for the 6th month running.
But "the labor market [remains] at or near maximum employment and inflation [is also] remaining somewhat elevated," said Powell in his
opening remarks to Congress today.
Silver also fell Tuesday but it held 10 cents above Friday's 2-week low of $35.52 per Troy ounce.
Fellow industrial precious metal platinum meantime dropped through but rebounded to $1300, a near 4.5-year high when reached in mid-June.
Palladium prices slipped $10 from yesterday's 2-week high of $1082 per Troy ounce.
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