Gold prices slip as dollar firms, Trump eases Powell uncertainty
Spot gold was down 0.4% at $3,334.19 per ounce, as of 0655 GMT. U.S. gold futures fell 0.6% to $3,340.30.
The dollar index rose 0.4% against its rivals, making greenback-priced bullion more expensive for other currency holders.
"Gold dropped (to) $3,340/oz as the U.S. dollar regained ground following eased uncertainty over the Federal Reserve chair's position" said Jigar Trivedi, senior commodity analyst at Reliance Securities.
Trump is open to the idea of firing Fed's Powell, a source told Reuters on Wednesday.
However, Trump said on Wednesday that he is not planning to fire Powell, but kept the door open to the possibility and renewed his criticism of the central bank chief for not lowering interest rates.
Data showed that U.S. producer prices were unexpectedly unchanged in June as an increase in the cost of goods because of tariffs on imports was offset by weakness in services.
"June's flat U.S. PPI reading indicated steady wholesale prices, suggesting tariffs may be impacting the economy less than initially feared," Trivedi said.
On the trade front, EU trade chief Maros Sefcovic headed to Washington for tariff talks, an EU spokesperson told Reuters, adding that he will meet U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.33% to 950.79 tons on Wednesday from 947.64 tons in the prior session.
Elsewhere, spot silver edged 0.2% lower to $37.87 per ounce. Platinum fell 0.6% to $1,408.85 and palladium slipped 1.3% to $1,214.53. - Reuters
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