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Gold prices saw a slight decline during Asian trading on Thursday due to an improvement in risk appetite, following comments from U.S. President Donald Trump, who downplayed concerns that he would prematurely remove Federal Reserve Chair Jerome Powell.
Despite this, the overall demand for gold remained relatively high, driven by ongoing uncertainty over Trump’s tariffs, which are set to take effect in just over two weeks. The broader metal markets were subdued, influenced by a stronger dollar, which held steady near a three-week high after the release of sticky inflation data for June.
Gold spot prices fell by 0.2%, reaching $3,342.09 per ounce, while September gold futures dropped by 0.3%, trading at $3,348.40 per ounce at 00:49 ET (04:49 GMT).
Trump’s recent statements on Powell helped lift market sentiment, though concerns about potential U.S. interest rate cuts lingered. Trump had previously ramped up attacks on Powell, claiming that the Fed Chair was too slow in cutting interest rates. However, Powell and other Federal Reserve policymakers signaled that rates would remain unchanged until the inflationary effects of Trump’s tariffs were more clearly understood.
Meanwhile, broader metal prices like platinum and silver held steady, with platinum rising slightly to $1,424.55 per ounce and silver increasing by 0.2% to $37.9945 per ounce. Copper futures on the London Metal Exchange remained flat, while U.S. copper futures saw a slight increase. The Fed is widely expected to maintain rates later this month, with retail sales and jobless claims data expected to offer additional insight into the U.S. economy.
