Gold prices remained steady during early Thursday trading in Asia, supported by a softer U.S. dollar following renewed political friction between former President Donald Trump and Federal Reserve Chair Jerome Powell. The stability in prices also came amid easing geopolitical tensions after a ceasefire between Israel and Iran.
Spot gold was flat at $3,336.65 per ounce, while August gold futures ticked up 0.1% to $3,347.45 by 01:08 ET (05:08 GMT). The metal had dropped earlier in the week as investor demand for safe-haven assets faded following news of the truce brokered by Trump.
Trump Criticizes Fed Leadership Amid Congressional Hearings
The dollar weakened after Trump launched a scathing attack on Powell, calling him “terrible” and suggesting a replacement might be imminent. Powell, testifying before Congress for a second day, reiterated his stance against rushing into interest rate cuts, warning that inflation driven by tariffs may linger longer than expected.
Trump’s remarks have reignited concerns over the Federal Reserve’s independence, weighing on the dollar and, in turn, supporting gold prices. The U.S. Dollar Index declined by 0.3% during Asian trading hours.
Safe-Haven Demand Softens as Ceasefire Holds
Despite the dip in the dollar, gold’s upward momentum remained limited. The continued ceasefire between Israel and Iran reduced geopolitical risk premiums, decreasing the urgency for investors to seek shelter in precious metals.
Platinum Surges on Supply Constraints, Industrial Demand
In the broader metals market, platinum led gains. Futures surged 1.6% to $1,372.60 an ounce, reaching their highest level since September 2014. The rally, which has seen platinum jump nearly 9% this week and 30% in June alone, is driven by robust industrial demand and tight supply conditions. Elevated lease rates and thin inventories have further fueled the rally.
Silver, Copper Benefit from Weaker Dollar and China Stimulus Hopes
Silver futures advanced 0.7% to $36.355 per ounce, benefiting from the weakened greenback and a brighter outlook for industrial demand.
Copper prices also gained ground. London Metal Exchange copper futures rose 0.5% to $9,770.35 per ton, while U.S. copper futures were up 0.3% at $4.94 per pound. The gains followed signals from Beijing that it will intensify efforts to revive domestic consumption, potentially through fresh stimulus measures aimed at bolstering economic activity.
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