Gold eases on profit-taking; eyes on Trumps Fed picks
Palladium drops to nearly a one-month low
(Updates prices for US mid-session trading)
Aug 6 (Reuters) - Gold prices eased on Wednesday as investors booked profits after prices hit a near two-week high in the previous session, while the market's focus shifted to U.S. President Donald Trump's upcoming Federal Reserve nominations.
Spot gold fell 0.1% to $3,378.12 per ounce by 1202 p.m. ET (1602 GMT). However, U.S. gold futures were up 0.1% at $3,436.90.
"We view this as a bit of a pullback ... a little profit-taking from the recent move higher in the midst of a quieter time on the economic front, and a little lesser need for that safe-haven demand," said David Meger, director of metals trading at High Ridge Futures.
Gold logged gains for three consecutive sessions after weaker-than-expected U.S. employment growth data on Friday. Market participants now see a more than 91% chance of a September rate cut, up from 63% earlier, according to CME FedWatch.
Gold tends to perform well during economic uncertainty and a low-interest environment further supports the non-yielding asset.
Trump said on Tuesday he will name a Fed Board nominee by the end of the week and has narrowed options to replace Chair Jerome Powell.
Elsewhere, spot silver added 0.2% to $37.89 per ounce. Meanwhile, platinum inched up 0.7% to $1,329.92 and palladium dropped nearly 3% to $1,140.85, reaching its lowest level since July 11.
"The concern about sanctions on Russia has been one of the factors that had supported platinum and palladium over the course of the last several weeks," Meger said.
"So, the prospects for decreased tensions between the U.S. and Russia most certainly has allowed for prices to come down in recent sessions," he added.
Russia is a major supplier of palladium and platinum.
U.S. envoy Steve Witkoff held "useful and constructive" talks with Russian President Vladimir Putin, a Kremlin aide said, two days before the expiry of a deadline set by Trump for Russia to agree to peace in Ukraine or face new sanctions. (Reporting by Sarah Qureshi in Bengaluru; Editing by Vijay Kishore and Mohammed Safi Shamsi)
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