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Gold prices found some support in Asian trade on Thursday, as a weaker dollar helped to stabilize bullion prices. Spot Gold remained largely unchanged at $3,336.65 an ounce, while Gold Futures for August rose 0.1% to $3,347.45/oz by 01:08 ET (05:08 GMT).
Earlier in the week, gold saw sharp losses following U.S. President Donald Trump’s announcement of a ceasefire between Israel and Iran, which undermined demand for safe-haven assets. However, as the ceasefire appeared to hold, the focus shifted back to U.S. political developments.
Trump Criticizes Fed Chair Powell, Pushing for Lower Interest Rates
Federal Reserve Chair Jerome Powell’s second day of testimony before Congress on Wednesday brought further tension to the ongoing debate over U.S. interest rates. Powell maintained his cautious stance on rate cuts, warning that inflation driven by tariffs might persist longer than expected. His remarks further highlighted the ongoing divide between Powell and President Trump, who continues to press for immediate interest rate reductions.
In a sharp rebuke, Trump criticized Powell, calling him “terrible” and revealing he was considering “three or four people” to replace him. A Wall Street Journal report named several potential replacements, including former Fed Governor Kevin Warsh, NEC Director Kevin Hassett, Treasury Secretary Scott Bessent, and current Fed Governor Christopher Waller.
These comments, which raised concerns over the Fed’s independence, pressured the dollar, naturally boosting gold’s appeal as a hedge during political and monetary uncertainty. The U.S. Dollar Index fell 0.3% in Asian hours, contributing to the mild uptick in gold prices.
Ceasefire Between Israel and Iran Dampens Safe-Haven Demand
Despite the positive influence from the weaker dollar, gold’s gains were limited by the Israel-Iran ceasefire, brokered by Trump. While the ceasefire appeared to hold through Wednesday, bringing relief to markets concerned about further escalation in the Middle East, it reduced some of the safe-haven demand for gold.
The truce helped bring down oil and risk premiums, resulting in a slight dip in investor demand for precious metals as geopolitical tensions eased.
Platinum Prices Surge, Reaching Highest Level in Over a Decade
Meanwhile, platinum prices continued their upward trend, surging nearly 9% this week and 30% so far in June. The precious metal reached its highest level in over a decade, fueled by strong demand and tightening supply. Platinum Futures jumped 1.6% to $1,372.60/oz, remaining at their highest level since September 2014.
The surge in platinum prices followed a bullish industry report in late May, which triggered heavy buying, and tight inventories combined with elevated lease rates continue to limit supply.
Other Metals Benefit from Weak Dollar
Other metals also benefitted from the weaker dollar, making them cheaper for foreign buyers. Silver Futures rose 0.7% to $36.355 per ounce, while benchmark Copper Futures on the London Metal Exchange gained 0.5% to $9,770.35 a ton. U.S. Copper Futures edged up 0.3% to $4.94 a pound.
The broader metal markets were further supported by China’s announcement of stronger measures to boost domestic consumption, hinting at the potential rollout of additional stimulus measures from Beijing, which provided a boost to commodities across the board.
In summary, while gold prices showed some resilience amid the weaker dollar, gains were capped by easing geopolitical tensions and the ongoing discourse around U.S. monetary policy. Meanwhile, platinum and other metals have seen significant gains, benefiting from a combination of a weaker dollar and strong demand signals.
