Gold prices weakened on Thursday, pressured by a stronger U.S. dollar, as investor concerns eased temporarily after President Donald Trump said he had no plans to fire Federal Reserve Chairman Jerome Powell.

Spot gold fell 0.6% to $3,324.81 an ounce, as of 09:58 GMT. U.S. gold futures fell 0.9% to $3,330.40. The dollar index (.DXY), opened in a new tab, rose 0.3% against a basket of major currencies on Thursday, making dollar-denominated bullion more expensive for holders of other currencies.

This came after a source told Reuters on Wednesday that Trump was open to the idea of firing Powell, which pushed gold prices up by 1.6%. However, Trump later said he had no plans to fire Powell but left the possibility open and again criticized the Fed leadership for not lowering interest rates. "Yesterday, gold prices rose on these unsubstantiated rumors. Since those rumors died down, prices have fallen," said Nitesh Shah, commodity strategist at WisdomTree.

Meanwhile, investors are awaiting US jobless claims and retail sales data on Thursday, along with speeches by several Fed officials that may provide insight into the central bank's policy outlook.

In tariff-related news, Trump said on Wednesday that the US will likely "keep its word" on tariffs with Japan and may soon reach a trade deal with India. "I think if we get past the August 1st (tariff deadline) with a much better trade deal, then that could have a negative impact on gold prices," Shah said.

Analysts note that gold is currently showing limited reaction to trade uncertainty and is awaiting new catalysts. Prices remain in a range between $3,300 and $3,400.

Elsewhere, spot silver fell 0.2% to $37.86 per ounce. Platinum rose 0.1% to $1,418.63, and palladium was steady at $1,231.44. (alg)

Source: Reuters