Gold prices inched up on Thursday, supported by a softer U.S. dollar and heightened uncertainty following reports that U.S. President Donald Trump had contemplated removing Federal Reserve Chair Jerome Powell as early as September or October. The news sparked worries about the Federal Reserve’s independence, increasing investor interest in safe-haven assets like gold.
In Dubai, gold rates rose, with 24-carat gold rising AED3.75 to AED402.75, and 22-carat gold climbing AED3.25 to AED372.75. Additionally, 21-carat gold saw an increase of AED3 to AED357.5, while 18-carat gold rose AED2.75 to AED306.5.
Globally, spot gold gained 0.17 percent to $3,336.91 as of 4:21 GMT. Meanwhile, U.S. gold futures rose 0.22 percent to $3,350.37.
The U.S. dollar fell to its lowest level since March 2022, making gold less expensive for holders of other currencies.
Trump seeks new, more dovish Fed Chair
Gold prices rose after Fed Chair Jerome Powell, in his remarks to a U.S. Senate panel on Wednesday, emphasized that although Trump’s tariffs might trigger a temporary rise in prices, the potential for sustained inflation remains a key concern, prompting the central bank to proceed cautiously with any additional rate cuts.
Analysts noted that Trump appears to favor a more dovish Federal Reserve leader in the future, which has increased expectations of a more aggressive rate-cutting cycle, putting pressure on the U.S. dollar. Gold prices typically perform well in times of uncertainty and when interest rates are low.
On Wednesday, Trump called Powell “terrible” and said he is considering three or four candidates for the top Fed post. Meanwhile, reports revealed that Trump has even contemplated announcing Powell’s potential successor by September or October.
Market awaits key U.S data
Markets are now looking forward to the release of a key U.S. GDP report due later in the day, with attention also focused on Friday’s release of Personal Consumption Expenditures (PCE) data.
Analysts noted that gold prices are largely stable for now, as investors wait for clarity from the latest U.S. macroeconomic indicators, including GDP and core PCE figures.
Meanwhile, a ceasefire between Israel and Iran appeared to be holding on Wednesday. During a NATO summit, U.S. President Trump welcomed the quick resolution of the 12-day conflict and indicated plans to push for assurances from Iran to abandon its nuclear ambitions in talks scheduled for next week.
Read| Stock market today: Asian shares rise, dollar hovers near four-year low amid Mideast ceasefire
Other precious metals
As gold prices rose, the precious metals market saw upward movement. Spot silver gained 0.17 percent to $36.36, while platinum rose 1.56 percent to $1,375.91. In addition, palladium surged 4.42 percent to $1,104.67.
