Gold prices rose sharply in Asia amid a weakening US dollar and news that President Trump is considering replacing Federal Reserve Chairman Jerome Powell in the near future.
Gold prices rose in Asia on June 26, amid a weaker dollar and growing uncertainty after reports that US President Donald Trump is considering replacing Federal Reserve Chairman Jerome Powell as early as September or October.
The news has raised concerns about the future independence of the US central bank, boosting demand for gold, a safe-haven asset.
At 1:40 p.m. Vietnam time, spot gold rose 0.1 percent to $3,336.02 an ounce. Gold futures rose 0.2 percent to $3,349.30 an ounce.
The US dollar index, which measures the greenback's strength against a basket of major currencies, fell to its lowest level since March 2022, making gold cheaper for buyers holding other currencies.
Speaking before the US Senate Banking Committee on June 25, Mr. Powell said that although Mr. Trump's tariffs may only cause a temporary spike in prices, the risk of persistent inflation is great enough for the Fed to be cautious about cutting interest rates further.
Trump clearly wants a more dovish Fed chairman in his next term, so the growing likelihood of an aggressive rate-cutting cycle is putting pressure on the dollar, said KCM Trade chief market analyst Tim Waterer.
President Trump criticized Mr. Powell on June 25 and said he was considering three or four candidates for the Fed chair position. Meanwhile, The Wall Street Journal reported that Mr. Trump was even considering announcing a possible successor to Mr. Powell in September or October.
Markets are awaiting US GDP data due out today (local time), while also keeping an eye on Personal Consumption Expenditure (PCE) data due out on June 27 for clues on the Fed's rate cut path.
In the market of other precious metals, spot silver price inched up 0.1% to 36.34 USD/ounce, while platinum price increased 1.8% to 1,379.58 USD/ounce.
In Vietnam, Saigon Jewelry Company SJC listed the price of gold bars at 117.8-119.8 million VND/tael (buy-sell)./.
Source: https://baolangson.vn/gia-vang-di-len-giua-bat-on-ve-vi-tri-chu-tich-fed-5051350.html
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