Gold prices increased during early Thursday’s trading, supported by the decline in the dollar and the increase in uncertainty after reports indicating that US President Donald Trump is considering choosing an alternative to the Federal Reserve Chairman (Central Bank) Jerome Powell early, by September or October.
Reports raised concerns about the independence of the US Central Bank in the future, which strengthened the demand for yellow metal, which is a safe haven.
By 0242 GMT, gold in instant transactions rose 0.2 percent to $ 339.20 an ounce. US gold futures increased 0.3 percent to $ 3353.10, according to Reuters data.
The dollar has declined to the lowest level since March 2022, making the price of US currency price less expensive for buyers than other currencies.
Powell told the US Senate Committee on Wednesday that Trump’s plans for customs duties may cause prices to rise only once, but the risk of continuous inflation is significant enough to be cautious to the central bank about further reduced interest rates.
“It is clear that Trump wants the president of the Federal Reserve next time tending to facilitate cash, so the increasing possibility of a strong reduction cycle of interest rates pressure the dollar,” said Tim Water, Sigan Market Zolo, in K.C.
Gold tends to rise during periods of uncertainty and in the low interest rate environment.
On Wednesday, Trump described Powell as “hateful” and said he was studying three or four candidates to take over the position of President of the Federal Reserve.
At the same time, the Wall Street Journal reported that Trump is considering announcing the potential successor of Powell by September or October.
The markets are awaiting the issuance of US GDP data later on today, while personal consumption expenses are also awaited tomorrow, Friday.
“Gold is currently tending to stability until we get the next group of American macroeconomic data, including gross domestic product and basic personal consumption expenses,” said Water.
The ceasefire between Israel and Iran appears to stand on Wednesday, as Trump praised the sidelines of the NATO summit at the high end of the 12 -day conflict.
He said that he would seek a commitment from Iran to end its nuclear ambitions in the talks next week.
As for other precious metals, silver increased in instant transactions 0.2 percent to $ 36.36 an ounce, and platinum increased 2.3 percent to $ 1385.38, while palladium jumped 5.5 percent to $ 1115.58.
