Gold Prices Decline as Dollar Rises and Global Trade Tensions Ease

Gold prices witnessed a decline during trading on Thursday, July 17, influenced by the rise of the US dollar and the easing of global trade tensions.

US President Donald Trump expressed optimism about reaching new trade agreements, stating yesterday that the United States is "very close" to reaching a deal with India, and also hinted at the possibility of reaching an understanding with the European Union.

On another note, Trump denied any immediate plans to dismiss Federal Reserve Chairman Jerome Powell, but did not completely rule out this option, reiterating his criticisms of the central bank's policies and interest rate cuts. An informed source told Reuters that Trump is "open to the idea of dismissing Powell."

A senior commodity analyst at Reliance Securities commented on this decline, saying: "Gold fell to $3340 per ounce as the dollar regained momentum following the diminishing uncertainty about the position of the Federal Reserve chairman."

In the futures markets, gold prices dropped by 0.4% to reach $3346.3 per ounce, reflecting the negative trend on the precious metal amid the current economic conditions.