Gold prices edged lower during Thursday's Asian deals, retreating from earlier gains as the United States dollar strengthened and uncertainty surrounding the Federal Reserve's leadership position diminished.
By 3:40 pm AEST (5:40 am GMT), spot gold was down $9.21 or 0.3% at US$3,337.86 per ounce.
The decline came as markets responded to fresh signals from Washington. While reports had suggested that President Trump was considering replacing Federal Reserve Chair Jerome Powell, the president later denied the speculation.
Economic data also weighed on gold. The U.S. producer price index (PPI) for June came in flat, missing expectations and indicating weaker pricing pressures at the wholesale level.
The PPI figures stood in contrast to the stronger-than-expected consumer price index (CPI) reported earlier in the week and suggested that recent tariff measures may be having a milder-than-anticipated impact on inflation.
On the trade front, European Union trade chief Maros Sefcovic met with U.S. officials in Washington for talks aimed at de-escalating tariff tensions between the two economies.
Meanwhile, U.S.-China relations appeared to stabilise following the administration’s decision to lift a ban on certain AI chip exports and the announcement of a new trade agreement with Indonesia.
