Gold Prices Decline as Dollar Recovers and Trump’s Federal Reserve Decisions Awaited
Gold prices saw a decline during trading on Wednesday, August 6, affected by the slight rise recorded by the US dollar, as investors await the announcement from US President Donald Trump regarding expected appointments in the Federal Reserve.
Gold recorded a 0.2% decline in spot trading, reaching $3371.98 per ounce, after hitting a two-week high during Tuesday's session. Meanwhile, gold futures in the US market fell by 0.1% to settle at $3428.50 per ounce.
This decline coincided with the dollar recovering from its weekly lows, which affected the appeal of the precious metal for investors dealing in other currencies.
Brian Lan, managing director of "Gold Silver Central" in Singapore, confirmed that gold prices are holding steady with a slight upward trend, expecting to test higher levels soon. He stated: "We see that gold prices are currently holding steady, and in fact, they are slightly trending upwards."
He added: "We expect gold prices to test higher levels, such as $3393, and we may see them test the $3400 level."
In related news, the market is awaiting Trump’s announcement regarding the successor to Adriana Kugler, a Federal Reserve member who announced her resignation before the end of her term, in addition to his nomination for a new central bank president.
Expectations indicate that the chances of an interest rate cut in the September meeting are about 87%, according to the "FedWatch" tool from the "CME Group," following weak employment data released last week that led to the dismissal of the Commissioner of the Bureau of Labor Statistics.
In another context, Trump reiterated the threat of imposing additional tariffs on Indian imports in response to New Delhi's continued purchase of Russian oil, while Indian officials described these threats as unjustified, affirming their determination to protect their country's economic interests.
Regarding other metals, silver remained stable at $37.82 per ounce, while platinum fell by 0.5% to $1313.94, and palladium dropped by 1% to $1164.15.
