2025-07-18 Sing Pao's Column《真金白銀》(English translation) Powell Turmoil Triggers Gold Volatility

Powell Turmoil Triggers Gold Volatility

Gold experienced dramatic price swings this week. In early New York trading, a stronger U.S. dollar pushed gold down to an intraday low of USD 3,320 per ounce. However, prices surged over USD 50 to a high of USD 3,377 after reports emerged suggesting that former President Donald Trump was considering dismissing Federal Reserve Chair Jerome Powell. The rally was short-lived, as Trump quickly denied the reports, leading gold to retrace most of its gains and settle around USD 3,340.

The episode once again highlighted Trump’s deep dissatisfaction with the Fed’s monetary stance. He has openly criticized the central bank for failing to lower interest rates promptly in a high-rate environment, which he argues has hindered U.S. economic growth. The Fed, on the other hand, maintains that policy easing should not proceed until it is clear whether recent tariffs on major trade partners will reignite inflationary pressures.

From a technical perspective, gold has rebounded above USD 3,345 and successfully broken through both the 20-day and 50-day Simple Moving Averages (SMA), which are now converging around USD 3,334 — a key short-term trend indicator. The 14-day Relative Strength Index (RSI) has climbed to 53, indicating rising momentum without yet entering overbought territory. Initial resistance lies at USD 3,371; a close above this level would pave the way toward the psychological barrier at USD 3,400. On the downside, a break back below the 20-day SMA may lead to a retest of the 50-day SMA at USD 3,323, followed by stronger support at USD 3,297 and the July low at USD 3,283.

Silver also saw a strong start to the week, breaking above its highest level since 2012 and touching USD 39.10 before pulling back to around USD 37.80. Despite some profit-taking, most of the gains were preserved. The RSI remains below overbought levels, indicating continued underlying demand and reinforcing the bullish outlook. Immediate resistance is seen at USD 40, with a successful breakout likely to open the path toward the 2011 high of USD 44. On the downside, support levels are identified at the recent low of USD 37.25, then USD 36.15, with the 50-day SMA near USD 35.10 offering structural support for the medium term.

In the cryptocurrency space, Bitcoin (BTC) finally broke out of its consolidation pattern, reaching a new all-time high of USD 123,000. Market momentum is no longer driven solely by retail investors, as institutional players continue to enter the space — signaling growing confidence in blockchain and digital assets. The regulatory environment is becoming more defined, and government support is adding tailwinds. The stablecoin market has now approached a market cap of USD 250 billion and is seeing real-world use in cross-border payments. Major institutions such as Citigroup are also exploring the feasibility of issuing their own stablecoins. As corporate adoption accelerates, the industry is poised to scale toward hundreds of millions of users, establishing itself as the next mainstream financial trend.

Disclaimer:

The content of this column is for informational purposes only and does not constitute investment advice or an offer to buy or sell any financial products. Investing involves risks. Readers should carefully evaluate their own circumstances and seek independent professional advice before making any investment.