Gold prices held steady during Asian trading on Thursday, supported by a weakening U.S. dollar after President Donald Trump ramped up criticism of Federal Reserve Chair Jerome Powell and renewed calls for interest rate cuts.
Spot gold hovered at $3,336.65 an ounce, little changed, while August gold futures edged up 0.1% to $3,347.45 an ounce by 01:08 ET (05:08 GMT).
Earlier in the week, bullion had faced significant losses following Trump’s announcement of a ceasefire between Israel and Iran — a development that eased geopolitical tensions and reduced safe-haven demand.
Platinum Surges to Decade High
Platinum prices remained elevated, holding at their highest level in more than 10 years. The metal has gained nearly 9% this week and is up about 30% for the month, driven by strong demand and limited supply.
Trump Renews Attacks on Powell; Ceasefire Holds
Federal Reserve Chair Jerome Powell appeared before Congress again on Wednesday, cautioning against premature rate cuts and emphasizing the potential persistence of inflation tied to tariffs.
The hearings further highlighted the divide between Powell and Trump, who continued to advocate for aggressive rate reductions.
Trump intensified his criticism, calling Powell “terrible” and revealing that he had narrowed down potential replacements to three or four individuals. According to The Wall Street Journal, possible candidates include former Fed Governor Kevin Warsh, NEC Director Kevin Hassett, Treasury Secretary Scott Bessent, and current Fed Governor Christopher Waller.
The renewed political pressure raised questions about the Fed’s independence and weakened the dollar, making gold more attractive as a hedge against political and monetary instability.
The U.S. Dollar Index dropped 0.3% during Asian hours.
Still, gold’s upside was limited by the continued ceasefire between Israel and Iran, which appeared to remain intact as of Wednesday. The truce reduced geopolitical risk, putting downward pressure on safe-haven demand.
Broader Metal Markets Advance on Dollar Weakness
Other metals benefited from the weaker dollar, which made commodities more affordable for overseas buyers. Market sentiment also improved after China pledged stronger efforts to boost domestic consumption, signaling potential stimulus measures.
Platinum futures jumped 1.6% to $1,372.60 per ounce, maintaining levels not seen since September 2014. The metal’s rally was sparked by a bullish industry report in late May and has been fueled further by tight inventories and high lease rates.
Silver futures gained 0.7% to $36.355 per ounce.
Copper also saw modest gains: London Metal Exchange benchmark futures rose 0.5% to $9,770.35 per ton, while U.S. copper futures added 0.3% to $4.94 per pound.
