Gold Slips as Dollar Strengthens, Trump Downplays Powell Firing Risks

Gold prices edged lower in Asian trading on Thursday as risk appetite slightly improved following U.S. President Donald Trump’s comments that it was “highly unlikely” he would fire Federal Reserve Chair Jerome Powell. The reassurance tempered some market fears, reducing safe-haven demand and lifting U.S. equities.

Spot gold dipped 0.2% to $3,342.09 per ounce, while September gold futures fell 0.3% to $3,348.40. Despite the pullback, underlying demand for gold remained supported by persistent uncertainty surrounding Trump’s upcoming tariff plans, which are expected to be enacted in just over two weeks.

Broader precious metals also showed resilience. Platinum inched up to $1,424.55 per ounce, holding above the key $1,400 level, which analysts at ANZ said could indicate further strength. Spot silver gained 0.2% to $37.9945 per ounce. Copper prices were mixed, with LME benchmark futures steady at $9,629.75 per ton and COMEX copper rising slightly to $5.5267 per pound.

The U.S. dollar remained firm near a three-week high, buoyed by sticky inflation data that dampened expectations for near-term rate cuts. Both consumer and producer price indices for June came in hotter than anticipated, reinforcing bets that the Fed will hold interest rates steady at its next meeting. Upcoming U.S. retail sales and jobless claims data are expected to offer further clues on the economic outlook.

Trump’s ongoing criticism of Powell has fueled market anxiety, but his latest comments eased concerns slightly. Still, Trump warned that firing Powell could still be on the table if fraud is found in the Fed’s renovation project. Meanwhile, the Fed has signaled a cautious approach, awaiting further clarity on inflation impacts from Trump’s trade measures.