Gold dips as dollar firms, Trump's Powell remarks ease market jitters

Synopsis

Gold prices experienced a slight dip in early Asian trading due to a stronger dollar and easing market concerns after President Trump suggested he wouldn't dismiss Federal Reserve Chair Jerome Powell. The dollar's rise made gold more expensive for international buyers. Investors remain wary of potential disruptions to the U.S. financial system. Meanwhile, U.S.

Gold prices dipped in early Asian trade on Thursday, pressured by a firmer dollar and easing market tensions after U.S. President Donald Trump said it was "highly unlikely" he would dismiss Federal Reserve Chair Jerome Powell.

FUNDAMENTALS

* Spot gold was down 0.2% at $3,340.16 per ounce, as of 0120 GMT. U.S. gold futures fell 0.4% to $3,346.50.

* The dollar index edged 0.1% higher against its rivals, making greenback-priced bullion more expensive for other currency holders.

* Trump is open to the idea of firing Federal Reserve Chair Jerome 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.

* Investors worry that removing Powell before his term ends in May 2026 would undermine credibility in the U.S. financial system and the dollar as a safe-haven currency.

* Gold is often used as a safe store of value during times of political and financial uncertainty.

* Data showed that U.S. 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.

* On the trade front, EU trade chief Maros Sefcovic headed to Washington on Wednesday for tariff talks, an EU spokesperson told Reuters, adding that he will meet U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.33% to 950.79 tons on Wednesday from 947.64 tons in the prior session.

* Spot silver eased 0.1% to $37.86 per ounce. Platinum rose 0.2% to $1,419.95 and palladium gained 0.2% to $1,233.09. DATA/EVENTS (GMT) 0600 UK Claimant Count Enem Chng, HMRC Payrolls Change June 0600 UK ILO Unemployment Rate May 0900 EU HICP Final MM, YY June 1230 US Import Prices YY, Retail Sales MM June 1230 US Philly Fed Business Indx July 1230 US Initial Jobless Clm 12 July.

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