Gold prices are moving up on Thursday, pushed by a weaker dollar and increasing uncertainty after reports that US President Donald Trump is considering replacing US Federal Bank President Jerome Paul Paul,
Reports have raised concerns about the future independence of the US Central Bank, enhancing the demand for gold bars.
The gold spot rose 0.12% to $ 3,335.20 per ounce.
The dollar has fallen to its lowest level since March 2022, making gold less expensive for buyers abroad.
Powell told a US Senate committee on Wednesday that while Trump’s duties may cause a lump sum price rise, the risk of persistent inflation is important enough for the central bank to be careful for further interest rates.
Open Powell’s possibility of replacement
“Trump clearly wants a mild president of the Fed next time, so the increased probability of an aggressive interest rate reduction cycle is captivating the dollar,” said KCM Trade Tim Waterer market chief.
Gold tends to shine in periods of uncertainty and low interest rates.
On Wednesday, Trump called Powell “awful” and said he was considering three or four candidates for Fed’s top position.
Meanwhile, the Wall Street Journal said Trump is thinking of announcing Powell’s possible successor by September or October.
Source: Skai
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