FX.co ★ Gold Edges Lower

Gold prices dropped to approximately $3,340 per ounce on Thursday, reversing the gains made during the previous session. This decline was prompted by the US dollar's recovery, following a reduction in uncertainty regarding the position of the Federal Reserve Chair. Although there were reports suggesting President Donald Trump was considering the removal of Fed Chair Jerome Powell, he later denied these claims, though he maintained his criticism of the interest rate policy. In June, the US Producer Price Index (PPI) remained unchanged, suggesting stable wholesale prices and indicating that tariffs may be having a lesser impact on the economy than previously anticipated. This contrasts with the increase observed in June’s Consumer Price Index (CPI). On the international trade front, the European Union's chief trade official visited Washington on Wednesday to engage in tariff discussions with key US trade and commerce leaders. Additionally, tensions between the US and China eased with the lifting of the AI chip ban and a new trade agreement with Indonesia, which reduced trade concerns and lessened gold's appeal as a safe-haven asset.