Gold prices were mostly unchanged in Asian markets on Thursday. Low interest rates provided some support to a weaker US dollar after the president criticized the Federal Reserve chairman. Earlier this week, gold prices fell sharply due to the ongoing ceasefire between Israel and Iran. The peace deal has dampened demand for safe-haven assets like gold.
The investigation highlights the ongoing disagreement between the president and the Federal Reserve chairman. The president wants to cut interest rates immediately, while the Fed chairman is more cautious. The president’s comments raised concerns about the Fed’s independence. This has weakened the dollar and made gold a less attractive safe-haven asset during uncertain times.
The US dollar index fell 0.3% in Asian trading hours. However, gold rose slightly due to the Trump-led ceasefire between Israel and Iran. This has somewhat dampened demand for gold as a safe-haven asset.
