Gold prices are supported by a weakening USD and increased concerns after the news that US President Donald Trump is considering replacing US Federal Reserve Chairman Jerome Powell in September or October.
Investors are concerned about the Fed's independent future, boosting demand for gold - a safe-haven asset. As of 6:40 GMT (ie 1:40 p.m. Vietnam time), spot gold prices increased by 0.1% to $3,336.02/ounce; US gold futures increased by 0.2% to $3,349.30/ounce.
The Dollar Index fell to its lowest level since March 2022, making gold more attractive to buyers holding other currencies.
Expert Tim Waterer - Director of Market Analysis at KCM Trade - commented: "Mr. Trump clearly wants a more dovish Fed Chairman. The increased possibility of the Fed cutting interest rates more aggressively has weakened the USD.
On June 26, Donald Trump publicly called Mr. Powell "bad guy" and revealed that he was considering 3 or 4 replacement candidates. Some newspapers have reported that Mr. Trump is even considering announcing Mr. Powell's successor in September or October.
The market is closely monitoring the US GDP report released on the day and personal consumption expenditure (PCE) data on June 28 to assess the possibility of the FED cutting interest rates.
In addition, a ceasefire between Israel and Iran remains in place, with Trump praising the quick end of the 12-day conflict at a NATO summit and saying he will seek a commitment from Iran to abandon the nuclear program in upcoming negotiations.
In other precious metals, silver rose 0.1% to $36.34 an ounce, platinum rose 1.8% to $1,379.58/ounce, and palladium jumped 3.4% to $1,093.7/ounce.
