Gold edged higher on Thursday, supported by a weaker dollar and growing uncertainty after reports suggested US President Donald Trump was considering replacing Federal Reserve chair Jerome Powell as early as September or October.
The reports raised concerns over the future independence of the US central bank, boosting demand for safe-haven bullion. Spot gold was up 0.1% at $3,336.02 per ounce. US gold futures rose 0.2% to $3,349.30.
Powell told a US Senate panel on Wednesday that while Trump's tariffs may cause a one-time price hike, the risk of persistent inflation is significant enough for the Fed to be cautious about further rate cuts.
"Trump clearly wants a dovish Fed chairman next time around, so the increased likelihood of an aggressive rate-cutting cycle is pinning down the dollar, an analyst said.
Bullion tends to do well during periods of uncertainty and in a low-interest-rate environment. On Wednesday, Trump called Powell "terrible" and said he is considering three or four candidates for the top Fed post.
Meanwhile, The Wall Street Journal reported that Trump has even toyed with the idea of announcing Powell's potential successor by September or October.
