Gold prices edged higher on Thursday, lifted by a weaker dollar and growing uncertainty after reports suggested US President Donald Trump had considered replacing Federal Reserve Chair Jerome Powell as early as September or October.
The reports raised concerns over the future independence of the US central bank, boosting demand for safe-haven bullion.
Spot gold was up 0.2 percent at $3,339.20 per ounce. US gold futures rose 0.3 percent to $3,353.10.
The dollar fell to its lowest level since March 2022, making greenback-priced gold less expensive for overseas buyers.
Powell told a US Senate panel on Wednesday that while Trump’s tariffs may cause a one-time price hike, the risk of persistent inflation is significant enough for the central bank to be cautious about further rate cuts.
“Trump clearly wants a dovish Fed Chairman next time around, so the increased likelihood of an aggressive rate-cutting cycle is pinning down the USD,” KCM Trade Chief Market Analyst Tim Waterer said.
