Gold Dips 0.2% to $3,342 as Trump Calms Powell Talk, Dollar Holds Firm

Gold prices inched lower in Thursday’s Asian session following U.S. President Donald Trump’s remarks that it is “highly unlikely” he would remove Federal Reserve Chair Jerome Powell. The statement slightly lifted investor sentiment, easing fears of political interference at the central bank and softening safe-haven demand.

Spot gold declined 0.2% to $3,342.09/oz, while September gold futures fell 0.3% to $3,348.40/oz. Market participants interpreted Trump’s tone shift as a temporary reprieve from escalating political tension surrounding monetary policy leadership.

While the president reiterated his belief that Powell had delayed interest rate cuts, he suggested that any dismissal would only occur if wrongdoing were found in the Fed’s infrastructure renovation—a vague reference that failed to shake markets further. Trump’s softer stance helped buoy U.S. equities and weighed slightly on demand for non-yielding assets like gold.

Dollar Strength Keeps Pressure on Metals

Broader metals faced downward pressure from a stronger U.S. dollar, which held near a three-week high following June’s sticky inflation data. Traders largely anticipate that the Fed will keep rates unchanged at its upcoming policy meeting, citing persistent pricing pressures.

The dollar’s stability—underpinned by:

• Hotter-than-expected CPI and PPI data for June
• Cooling speculation around near-term rate cuts
• Expectations for strong retail sales and labor data due later Thursday

—continues to sap momentum from the metals market.

While gold remains well-supported in the medium term by geopolitical uncertainty and tariff tensions, near-term moves are increasingly dictated by interest rate expectations and dollar dynamics.

Platinum and Silver Continue to Outperform

Even as gold saw mild losses, other precious metals posted modest gains:

• Spot platinum rose to $1,424.55/oz, building on its strong close above $1,400. Analysts at ANZ suggest this may signal further upside.
• Spot silver climbed 0.2% to $37.9945/oz, maintaining its recent bullish trend amid sustained industrial demand.

Meanwhile, benchmark copper futures on the London Metal Exchange held steady at $9,629.75/ton, and U.S. COMEX copper advanced slightly to $5.5267/pound, reflecting muted risk appetite across industrial commodities.

Looking ahead, investors will closely monitor U.S. retail sales and jobless claims figures for further insight into economic momentum and any shifts in the Fed’s rate outlook.

With tariff deadlines nearing and political crosswinds growing, the metals complex remains highly sensitive to policy signals and inflationary trends.