Gold eases as Trump backs off from threats to fire Fed chair

[BENGALURU] Gold prices declined on Wednesday (Apr 23) after US President Donald Trump backed off threats to fire the Federal Reserve chair and US Treasury Secretary Scott Bessent hinted at easing trade tensions, denting the metal’s safe-haven appeal.

Spot gold fell 1.2 per cent to US$3,340.92 an ounce by 0013 GMT. US gold futures fell 2 per cent to US$3,349.20.

On Tuesday, Trump backed off from threats to fire Federal Reserve chair Jerome Powell after days of intensifying criticisms of the central bank chief for not cutting interest rates.

The president also expressed optimism that a trade deal with China could “substantially” reduce tariffs.

Meanwhile, Scott Bessent said he believes there will be a de-escalation in US-China trade tensions, but negotiations with Beijing have not yet started and would be a “slog”.

Following this, the US dollar regained some ground after hitting a three-year low, making gold more expensive for other currency holders.

Non-yielding gold, considered a hedge against global uncertainty and inflation and tends to thrive in a low-interest-rate environment, notched its 28th record high on Tuesday as it surged to the US$3,500-per-ounce mark for the first time.

Fed Bank of Minnesota president Neel Kashkari said it is too soon to know how short-term borrowing costs may need to be adjusted for Trump’s tariffs and their expected impact on inflation and the economy.

Meanwhile, JP Morgan sees gold prices crossing the US$4,000-per-ounce milestone next year.

Spot silver rose 0.2 per cent to US$32.58 an ounce, platinum eased 0.6 per cent to US$952.65 and palladium lost 0.4 per cent to US$931.91. REUTERS