Gold falls after Trump backs down on threat to fire Powell

Gold prices fell on Wednesday after US President Donald Trump backed down on his threat to fire Federal Reserve Chairman Jerome Powell and expressed optimism about a trade deal with China, dampening the safe-haven appeal of the yellow metal.

Spot gold fell 0.7% to $3,357.11 per ounce. US gold futures fell 1.5% to $3,366.80.

Kelvin Wong, senior market analyst for Asia-Pacific at OANDA, said that hints of US-China negotiations and Trump’s backing down on his threat to fire Powell caused gold prices to fall, according to Reuters.