Gold prices fell in Asian trade on Thursday amid some improvement in risk appetite after U.S. President Donald Trump downplayed fears that he will prematurely fire Fed Chair Jerome Powell.
Broader metal prices were also subdued amid pressure from a stronger dollar, which steadied near a three-week high following sticky inflation data for June.
But haven demand for gold remained upbeat, especially amid growing uncertainty over Trump’s tariffs, which are set to take effect in just over two weeks.
Platinum and silver also largely maintained their outperformance over gold.
Spot gold fell 0.2% to $3,342.09 an ounce, while gold futures for September fell 0.3% to $3,348.40/oz by 00:49 ET (04:49 GMT).
Trump says firing Powell ‘highly unlikely’
Trump on Wednesday said it was “highly unlikely” he would fire Fed Chair Powell, although it still remained a possibility if there was evidence of fraud in the Fed’s ongoing renovation project.
Concerns over Powell’s firing were fueled by Trump ramping up his attacks on the Fed Chair, while several members of Trump’s Republican allies were also seen calling for Powell’s immediate removal.
Trump claimed that Powell has been too late in cutting U.S. interest rates, demanding that he do so immediately to prevent economic damage. Powell and several Fed policymakers, on the other hand, have signaled that interest rates will remain unchanged until the inflationary impact of Trump’s tariffs becomes clear.
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