Gold prices dipped on Thursday, pressured by a firmer dollar and easing market tensions after US President Donald Trump said it was “highly unlikely” he would dismiss Federal Reserve Chair Jerome Powell.
Spot gold was down 0.2 percent at $3,340.79 per ounce, as of 0400 GMT. US gold futures GCcv1 fell 0.4 percent to $3,347.
The dollar index edged 0.1 percent higher against its rivals, making greenback-priced bullion more expensive for other currency holders.
“Gold dropped $3,340/oz as the US dollar regained ground following eased uncertainty over the Federal Reserve chair’s position” said Jigar Trivedi, senior commodity analyst at Reliance Securities.
Trump is open to the idea of firing Fed’s Powell, a source told Reuters on Wednesday.
However, Trump said on Wednesday that he is not planning to fire Powell, but kept the door open to the possibility and renewed his criticism of the central bank chief for not lowering interest rates.
Data showed that US producer prices were unexpectedly unchanged in June as an increase in the cost of goods because of tariffs on imports was offset by weakness in services.
“June’s flat US PPI reading indicated steady wholesale prices, suggesting tariffs may be impacting the economy less than initially feared,” Trivedi said.
