Gold cheapens amid strengthening dollar and reduced uncertainty regarding the Fed chairman
Kyiv • UNN
Gold prices fell by 0.2% to $3340.79 per ounce due to a strengthening dollar and easing market tensions. This occurred after Donald Trump's statement about the "highly unlikely" dismissal of Fed Chairman Jerome Powell.
Gold prices fell on Thursday under pressure from a strengthening dollar and easing market tensions after US President Donald Trump said his dismissal of Federal Reserve (Fed) Chairman Jerome Powell was "highly unlikely," UNN reports with reference to Reuters.
Details
Spot gold prices fell 0.2% to $3340.79 per ounce by 04:00 GMT (07:00 Kyiv time). US gold futures fell 0.4% to $3347.10.
The dollar index rose 0.1% against other currencies, making dollar-denominated bullion more expensive for holders of other currencies.
"Gold prices fell to $3340 per ounce amid a recovery in the US dollar after uncertainty regarding the Fed chairman's position eased," said Jigar Trivedi, senior commodities analyst at Reliance Securities.
Trump is open to the idea of firing Fed Chairman Powell, a source told Reuters on Wednesday. However, Trump said on Wednesday that he had no plans to fire Powell, but did not rule out such a possibility and again criticized the US central bank chief for not lowering interest rates.
Data showed that US producer prices unexpectedly did not change in June, as rising goods costs due to import duties were offset by falling prices in the services sector.
"The low level of the US Producer Price Index in June indicates stable wholesale prices, suggesting that tariffs may have less impact on the economy than initially thought," Trivedi said.
Regarding trade, EU foreign trade chief Maroš Šefčovič traveled to Washington on Wednesday for talks on tariffs, an EU official told Reuters, adding that he would meet with US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, reported that its holdings rose 0.33% to 950.79 tonnes on Wednesday from 947.64 tonnes in the previous session.
Spot silver prices rose 0.1% to $37.98 per ounce. Platinum prices rose 0.2% to $1419.67, while palladium prices fell 0.1% to $1230.14.