Trump's Latest Remarks! Gold Rebounds After Sharp Fall – Will the Bullish Trend Continue?

After the sharp plunge on October 21, COMEX gold rebounded following a flash crash at the opening on October 22, hitting an intraday high of $4,175. Many market participants believe the recent steep decline in gold is more like a normal correction after a rapid rally. However, Trump's latest remarks about his meeting with Putin have reignited market concerns.

According to comprehensive market analysis, the sharp drop in international gold prices on October 21 was largely related to the easing of risk aversion sentiment due to discussions of a "ceasefire" between Russia and Ukraine. However, the situation has taken a new turn.

As reported by Xinhua News Agency, the French presidential office issued a joint statement on October 21 from several European leaders (including Ukrainian President Zelenskyy) on the Ukraine issue, expressing "strong support" for U.S. President Trump's stance on Ukraine. This stance calls for an immediate ceasefire between Russia and Ukraine, using the current front lines as the starting point for negotiations.

Trump also posted on social media, saying he "strongly advises" Russia and Ukraine to reach an agreement, suggesting they "stop where they are" and "each declare victory." He further stated that the Donbas region should be "divided" along the current front lines, with a demarcated ceasefire and mutual troop withdrawals. Some media interpretations indicate that under Trump's proposal, most of the Donbas region would be controlled by Russia.

However, news of the potential postponement of Trump's meeting with Putin in Budapest has cast another shadow over the Russia-Ukraine situation. As reported by Xinhua, Trump stated on October 21 that the planned meeting was put on hold because he did not want to "waste time." "I don’t want to hold a meaningless meeting," he said. "I don’t want to waste time—so let’s see what happens."

Additionally, according to reports cited by China News Service, Russia launched a large-scale airstrike on Ukraine in the early hours of October 22 local time, with explosions occurring in Kyiv and other Ukrainian cities. Some investors noted that this series of "uncertainties" will undoubtedly revive the previously fading risk aversion sentiment.