Gold prices remained largely flat in Asian trading on Thursday, stabilizing after recent volatility driven by geopolitical developments and monetary policy tensions in the United States.
Spot gold held near $3,336.65 per ounce, while August futures rose slightly by 0.1% to $3,347.45, as of 01:08 ET. The yellow metal had dropped earlier in the week following an unexpected ceasefire between Israel and Iran, which reduced demand for safe-haven assets. However, gold found renewed support from a weaker U.S. dollar, which typically increases the metal’s appeal to foreign buyers.
Tensions between the White House and the Federal Reserve also contributed to market jitters. President Donald Trump’s public criticism of Fed Chair Jerome Powell, alongside hints of replacing him, pressured the dollar and reinforced the appeal of gold during periods of policy uncertainty.
Trump-Powell Rift, Dollar Weakness Drive Demand
The dollar declined in early Asian hours, with the U.S. Dollar Index falling 0.3%, after Powell reiterated his cautious stance on interest rate cuts during Congressional testimony.
Trump responded sharply, calling Powell “terrible” and disclosing he was considering three or four replacements. Reported candidates include:
- Kevin Warsh (former Fed Governor)
- Kevin Hassett (NEC Director)
- Scott Bessent (Treasury Secretary)
- Christopher Waller (Fed Governor)
These remarks sparked concerns over the Fed’s independence, undermining the dollar and providing a modest tailwind for gold. Still, the Israel-Iran truce, brokered by Trump, limited further upside by reducing immediate geopolitical risk.
Key takeaways:
- Gold prices stabilize despite recent drop
- Trump-Powell feud raises monetary policy concerns
- Ceasefire agreement dampens safe-haven demand
Platinum Surges; Broader Metals Gain
Precious and industrial metals benefited from both a weaker dollar and bullish sentiment in Asia, particularly following new signals of stimulus from China aimed at boosting domestic consumption.
Platinum futures climbed 1.6% to $1,372.60/oz, hitting their highest level since September 2014. The metal has gained nearly 30% in June amid tightening supply and bullish market sentiment triggered by a late-May industry report.
Other notable movements:
- Silver futures rose 0.7% to $36.355/oz
- London copper futures up 0.5% to $9,770.35/ton
- U.S. copper futures edged 0.3% higher to $4.94/pound
As global macroeconomic uncertainty lingers and central banks diverge in policy direction, metal markets remain a key barometer for investor sentiment, balancing risk appetite with demand for tangible assets.