Gold Prices Flicker As Trump-Powell Feud Overshadows Iran-Israel Ceasefire Calm

Gold inched up in Asian trading hours on Thursday as investors weighed rising political uncertainty and a pullback in the dollar. 

Spot prices rose 0.2% to $3,337.92 an ounce in early Asia trading, after closing 0.3% higher on Wednesday. U.S. gold futures also gained 0.3% to $3,353.10.

Gains were driven by growing speculation that U.S. President Donald Trump may replace Federal Reserve Chair Jerome Powell as early as September or October. 

The Wall Street Journal reported that Trump is considering announcing a successor in the coming months, which stoked concerns over the central bank’s independence.

On Wednesday, Trump called Powell “terrible,” while Fed Chair Powell told a Senate panel that the bank was still evaluating how Trump’s trade tariffs may influence inflation. 

Although Powell said the tariffs could cause a one-time price jump, he warned of broader inflation risks and signaled caution on rate cuts.

"Trump clearly wants a dovish Fed Chairman next time around, so the increased likelihood of an aggressive rate-cutting cycle is pinning down the USD," Tim Waterer, Chief Market Analyst at KCM Trade, told Reuters. 

Meanwhile, geopolitical tensions remained in focus. 

Trump said the Israel-Iran conflict was effectively over but warned that fighting “could maybe start soon.” 

He also reiterated the plan for U.S. and Iranian officials to meet next week. 

The advance in gold this week on safe-haven demand comes as the price of bullion has risen by more than 25% in 2025, with gains supported by central bank buying and expectations for monetary easing. 

However, the rally in gold has lost momentum in recent months as investors await new macroeconomic catalysts. 

The metal is still about $160 below its all-time peak.

"Gold is just basically treading water for the moment until we get a read on the next batch of U.S. macro data, including GDP and core PCE," Waterer added. 

U.S. GDP figures are due later Thursday, with inflation data to follow on Friday.

Other precious metals posted sharp moves. 

Platinum added 2.3% to $1,385.38, its highest since 2014, while palladium jumped 5.5% to $1,115.58 before paring gains. Silver was up 0.2% at $36.36 per ounce.

On Stocktwits, retail sentiment for the SPDR Gold Shares ETF (GLD) was described as ‘bearish’ with ‘normal’ message volume.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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