Gold prices steady amid Israel-Iran truce, weak dollar

Published 26/06/2025, 05:28
Updated 26/06/2025, 06:52
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Investing.com-- Gold prices steadied in Asian trade on Thursday, taking some support from a weaker dollar after President Donald Trump criticised Fed Chair Jerome Powell and called for lower interest rates.

Spot Gold was largely unchanged at $3,336.65 an ounce, while Gold Futures for August rose 0.1% to $3,347.45/oz by 01:08 ET (05:08 GMT). 

Bullion saw sharp losses earlier in the week after President Donald Trump announced the Israel-Iran ceasefire, eroding the appeal for safe-haven assets.

Meanwhile, platinum prices remained at their highest level in over a decade. The precious metal has climbed nearly 9% this week and 30% in June so far, fueled by strong demand and tightening supply.

Trump attacks Fed’s Powell; Israel-Iran truce holds

Federal Reserve Chair Jerome Powell appeared before Congress again on Wednesday, repeating his caution against cutting interest rates too soon and warning that inflation caused by tariffs might prove more lasting than initially expected.

The two-day hearings underscored the ongoing divide between Powell and Trump, who continues to push for immediate rate cuts.

Trump sharply criticized Powell on Wednesday, calling him “terrible” and revealing he has “three or four people” under consideration to replace him. 

A Wall Street Journal report stated potential contenders as former Fed Governor Kevin Warsh, NEC Director Kevin Hassett, Treasury Secretary Scott Bessent, and Fed Governor Christopher Waller

These remarks fueled doubts over the Fed’s independence and pressured the dollar, naturally lifting gold’s appeal as a safeguard during political and monetary turbulence.

The US Dollar Index fell 0.3% in Asia hours.

However, gold only inched higher as gains were capped by a ceasefire between Israel and Iran brokered by Trump, which appeared to hold through Wednesday.

The agreement helped bring down oil and risk premiums, curbing some of the safe-haven demand for gold. 

Metal markets jump on weak dollar, Platinum at over-10-yr high

Broader metal markets rose as a weaker dollar made the commodities cheaper for foreign buyers.

Gains were also supported by China announcing that it will take stronger steps to boost weak domestic consumption, signaling the potential rollout of additional stimulus measures from Beijing.

Platinum Futures jumped 1.6% to $1,372.60/oz, remaining at their highest level since September 2014.

Platinum has been on the rise after a bullish industry report in late May triggered heavy buying, while tight inventories and elevated lease rates continue to limit supply.

Silver Futures rose 0.7% to $36.355 per ounce.

Meanwhile, benchmark Copper Futures on the London Metal Exchange rose 0.5% to $9,770.35 a ton, while U.S. Copper Futures edged up 0.3% $4.94 a pound.

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