Gold prices increase thanks to the weakness of the dollar

Gold prices rose today, supported by the decline in the dollar and the increasing state of uncertainty after reports indicating that US President Donald Trump is considering choosing an alternative to the Federal Reserve Chairman (Central Bank) Jerome Powell early, by September or October.

Reports raised concerns about the independence of the US Central Bank in the future, which strengthened the demand for yellow metal, which is a safe haven.

By 02:42 GMT, gold in instant transactions rose 0.2 percent to $ 339.20 an ounce.

US gold futures increased 0.3 percent to $ 3353.10.

The dollar has declined to the lowest level since March 2022, making the price of US currency price less expensive for buyers than other currencies.

Powell to the US Senate Committee said that Trump’s plans for customs duties may cause prices to rise only once, but the risk of continuous inflation is significant enough to be cautious to the central bank about further reduced interest rates.

“It is clear that Trump wants the president of the Federal Reserve next time tending to facilitate cash, so the increasing possibility of a strong reduction cycle of interest rates is pressing the dollar,” said Tim Water, a chief market analyst in KSIT.

Gold tends to rise during periods of uncertainty and in the low interest rate environment.

On Wednesday, Trump described Powell as “hateful” and said he was studying three or four candidates to take over as the Federal Reserve Speaker.

At the same time, the Wall Street Journal reported that Trump is considering announcing the potential successor of Powell by September or October.

The markets are waiting for the issuance of US GDP data later today, while personal consumption expenses are also awaiting tomorrow, Friday.

“Gold is currently tending to stability until we get the next group of American macroeconomic data, including gross domestic product and basic personal consumption expenses,” Waterwar said.

For other precious minerals, silver increased in instant transactions 0.2 percent to $ 36.36 an ounce, and platinum increased 2.3 percent to $ 1385.38, while palladium jumped 5.5 percent to $ 1115.58.