Gold steadies as investors weigh outlook for Trump-Powell saga

Gold steadied after a volatile session on Wednesday as traders assessed the outlook for Jerome Powell’s tenure as Federal Reserve chair after more speculation that President Donald Trump may axe him.

Bullion was below $3 350 an ounce after rising 0.7% in the previous session. The president said he’s “not planning on doing anything” to remove Powell, after a White House official said Trump was likely to seek the Fed chair’s ouster. Gold surged, and US stocks, the dollar and Treasury yields dropped after the initial speculation before Trump’s clarification calmed markets.

Still, concerns about political intervention linger. The firing of Powell ahead of the end of his term in 2026 would throw the Fed’s independence into question, and likely boost the haven appeal of gold. The precious metal is almost 30% higher this year, supported by trade and geopolitical tensions, along with robust inflows to exchange-traded funds and buying by central banks.

Gold was steady at $3 343.61 an ounce as of 8:40 a.m. in Singapore. The Bloomberg Dollar Spot Index rose 0.1%. Platinum and palladium were little changed after both surging more than 3% in the previous session.

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