Gold Eases as Trump Backs Off Fed Chair Threat
Gold prices edged lower on Tuesday as US President Donald Trump appeared to back away from threats to dismiss Federal Reserve Chairman Jerome Powell, easing some safe-haven demand for the metal.
Trump said on Monday he had "confidence" in Powell, despite having called him a "fool" earlier this month. Trump has repeatedly criticized the Fed for raising interest rates, arguing that higher borrowing costs could hurt the US economy.
Spot gold was down 0.1 percent at $1,222.86 per ounce. US gold futures were little changed at $1,227.40 per ounce.
"Gold is under some pressure as Trump's latest comments on Powell have calmed market nerves a bit," said Peter Fung, head of dealing at Wing Fung Precious Metals.
"However, the overall environment remains supportive for gold as global growth worries and US-China trade tensions still linger."
Gold prices have found support from disappointing economic data from major economies like China and the eurozone, which fueled expectations that central banks may keep interest rates low to support growth. The metal has also benefited from safe-haven demand amid escalating US-China trade tensions.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.12 percent to 751.41 tonnes on Monday.
Among other precious metals, palladium rose 0.2 percent to $1,250.99 per ounce. Silver slipped 0.1 percent to $14.56 per ounce, while platinum was up 0.1 percent at $800.90.
