Gold prices dropped on Thursday as the U.S. dollar strengthened and market concerns eased following President Donald Trump’s remarks downplaying the likelihood of firing Federal Reserve Chairman Jerome Powell.
Spot gold fell by 0.4% to $3,334.19 per ounce, while U.S. gold futures declined by 0.6% to $3,340.30. The dollar index rose by 0.4%, making gold more expensive for holders of other currencies and reducing its appeal as a safe-haven asset.
“Gold fell to $3,340 an ounce as the dollar regained momentum after the uncertainty surrounding the Fed chairman’s position eased,” said Jigar Trivedi, senior commodity analyst at Reliance Securities.
Earlier reports had suggested Trump was considering removing Powell. While he later said it was “highly unlikely” he would do so, Trump did renew his criticism of the Fed for not cutting interest rates.
Additionally, economic data showed that U.S. producer prices remained stable in June, as lower service costs offset increases in goods prices driven by import tariffs. The data reduced expectations for immediate Fed action, further dampening gold demand.
