Gold prices eased slightly during Thursday’s Asian session as a marginal rebound in risk sentiment followed comments from U.S. President Donald Trump, who played down concerns about the possible removal of Federal Reserve Chair Jerome Powell.
Other precious metals showed limited movement, under pressure from a stronger dollar, which remained near a three-week high amid persistent inflation signals in June’s economic data.
Even with the dip, safe-haven interest in gold stayed relatively firm due to ongoing uncertainty over Trump’s proposed tariff hikes, set to take effect in just over two weeks. Meanwhile, platinum and silver continued to hold their relative strength versus gold.
Spot gold slipped 0.2% to $3,342.09 an ounce, while futures for September delivery declined 0.3% to $3,348.40 as of 00:49 ET (04:49 GMT).
Trump: Powell firing ‘highly unlikely’
On Wednesday, President Trump addressed speculation around Powell’s job security, saying it was “highly unlikely” he would dismiss the Fed Chair. However, he added that the scenario could change if fraud were uncovered in connection with the central bank’s ongoing headquarters renovation.
The possibility of Powell’s early removal gained traction earlier this week, as Trump intensified his public criticism of the Fed’s policy stance, and several Republicans echoed calls for Powell’s dismissal.
Trump has long expressed dissatisfaction with the Fed’s reluctance to cut interest rates, insisting more aggressive action is needed to shield the economy. In contrast, Powell and fellow central bank officials have argued for a more measured approach, opting to hold rates steady while evaluating the impact of trade policies on inflation.
Trump’s softer tone regarding Powell helped soothe market nerves, easing short-term gold demand and lending support to U.S. equities.
Dollar holds firm as rate cut expectations wane
Expectations for an imminent rate cut by the Federal Reserve have waned, particularly after June’s inflation report reinforced the view that price pressures remain elevated. This has helped the dollar maintain its upward momentum, trading near its highest levels in three weeks.
Investor attention is now shifting to upcoming U.S. retail sales and weekly jobless claims reports, due later on Thursday, which are expected to provide further clarity on the economic outlook.
In metals trading, spot platinum edged up to $1,424.55 per ounce. Analysts at ANZ highlighted the significance of Wednesday’s close above the $1,400 mark, suggesting potential for continued gains.
Spot silver rose 0.2% to $37.9945 per ounce.
Copper futures held steady on the London Metal Exchange at $9,629.75 per ton, while U.S.-traded COMEX copper futures nudged higher to $5.5267 per pound.
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