Gold prices held their ground early Thursday in Asian trading, buoyed by a softer U.S. dollar after fresh political tensions surfaced between former President Donald Trump and Federal Reserve Chair Jerome Powell. The metal’s stability was also supported by a reduction in geopolitical risks following a ceasefire agreement between Israel and Iran.
Spot gold remained unchanged at $3,336.65 per ounce, while August gold futures edged up slightly by 0.1% to $3,347.45 as of 01:08 ET (05:08 GMT). Earlier this week, gold had retreated as investors’ appetite for safe-haven assets waned after news of the truce brokered by Trump.
Trump Targets Fed Leadership During Congressional Testimony
The dollar softened after Trump harshly criticized Powell, labeling him “terrible” and hinting at a possible leadership change. Meanwhile, Powell, addressing Congress for the second day, maintained a cautious stance on interest rate cuts, emphasizing the risk that tariff-driven inflation could persist longer than anticipated.
Trump’s comments renewed worries about the Federal Reserve’s autonomy, putting downward pressure on the dollar and providing support for gold prices. The U.S. Dollar Index slipped 0.3% during the Asian session.
Safe-Haven Demand Dims as Ceasefire Takes Hold
Despite the weaker dollar, gold’s rally remained muted. The ongoing ceasefire between Israel and Iran eased geopolitical concerns, reducing investors’ urgency to flock to precious metals as a safety hedge.
Platinum Climbs Sharply on Supply Tightness and Strong Industrial Demand
Platinum outperformed other metals, surging 1.6% to $1,372.60 per ounce—its highest level since September 2014. This week, the metal has gained nearly 9%, with a 30% jump in June alone, driven by strong industrial use and constrained supply. Rising lease rates and low inventories have further accelerated the price surge.
Silver and Copper Lifted by Dollar Weakness and Chinese Stimulus Optimism
Silver futures rose 0.7% to $36.36 per ounce, buoyed by a softer dollar and improving prospects for industrial demand. Copper prices also climbed, with London Metal Exchange futures up 0.5% at $9,770.35 per ton and U.S. futures gaining 0.3% to $4.94 per pound. These moves follow signals from Beijing indicating plans to ramp up efforts to boost domestic consumption, potentially through new stimulus measures aimed at energizing the economy.