Gold dips as US dollar firms, Trump’s Powell remarks ease market jitters

[BENGALURU] Gold prices dipped in early Asian trade on Thursday (Jul 17), pressured by a firmer US dollar and easing market tensions after US President Donald Trump said it was “highly unlikely” he would dismiss Federal Reserve chair Jerome Powell.

Spot gold was down 0.2 per cent at US$3,340.16 per ounce, as at 0120 GMT. US gold futures fell 0.4 per cent to US$3,346.50.

The US dollar index edged 0.1 per cent higher against its rivals, making greenback-priced bullion more expensive for other currency holders.

Trump is open to the idea of firing Federal Reserve chair Jerome Powell, a source told Reuters on Wednesday.

However, Trump said on Wednesday that he is not planning to fire Powell, but kept the door open to the possibility and renewed his criticism of the central bank chief for not lowering interest rates.

Investors worry that removing Powell before his term ends in May 2026 would undermine credibility in the US financial system and the US dollar as a safe-haven currency.

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Gold is often used as a safe store of value during times of political and financial uncertainty.

Data showed that US producer prices were unexpectedly unchanged in June as an increase in the cost of goods because of tariffs on imports was offset by weakness in services.

On the trade front, EU trade chief Maros Sefcovic headed to Washington on Wednesday for tariff talks, an EU spokesperson told Reuters, adding that he will meet US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.33 per cent to 950.79 tonnes on Wednesday from 947.64 tonnes in the prior session.

Spot silver eased 0.1 per cent to US$37.86 per ounce. Platinum rose 0.2 per cent to US$1,419.95 and palladium gained 0.2 per cent to US$1,233.09. REUTERS