ISLAMABAD (PEN) : Gold prices inched higher on Thursday, buoyed by a softer U.S. dollar and growing market uncertainty following reports that President Donald Trump is considering replacing Federal Reserve Chair Jerome Powell later this year.
Market Uncertainty Lifts Safe-Haven Demand
Spot gold rose by *0.2% to \$3,339.20 per ounce* as of 0242 GMT, while U.S. gold futures gained *0.3% to \$3,353.10*. The uptick follows speculation around a potential shake-up at the U.S. central bank, stoking concerns over the Fed’s future independence.
The dollar index (.DXY) dropped to its *lowest level since March 2022*, making gold more appealing to international investors by lowering its price in other currencies.
Trump’s Comments Stir Fed Speculation
Uncertainty was amplified after *The Wall Street Journal* reported that Trump is weighing the announcement of Powell’s successor by *September or October*. Speaking at a NATO summit, Trump labeled Powell “terrible” and suggested he is evaluating “three or four candidates” to lead the Federal Reserve.
According to *Tim Waterer*, Chief Market Analyst at KCM Trade, “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.”
Gold typically performs well during periods of political or economic instability and benefits from a low-interest-rate environment.
Fed’s Outlook and Upcoming Economic Data
In testimony to the U.S. Senate on Wednesday, *Chair Powell* noted that Trump’s tariffs could lead to a one-off increase in prices, but warned of persistent inflation risks—cautioning against hasty rate cuts.
Investors now await key U.S. macroeconomic indicators, with *GDP data* expected later today and the *Personal Consumption Expenditures (PCE)* index due Friday. “Gold is just basically treading water for the moment until we get a read on the next batch of U.S. macro data including GDP and core PCE,” Waterer added.
Other Precious Metals Edge Higher
Silver rose 0.2% to *$36.36 per ounce*
Platinum advanced 2.3% to $1,385.38*
Palladium jumped 5.5% to $1,115.58
Meanwhile, a ceasefire between Israel and Iran appeared to hold, as Trump praised the resolution of the 12-day conflict and confirmed plans to negotiate an end to Iran’s nuclear program next week.
