Gold Prices Fall After Initial Surge as Dollar Strengthens, Treasury Yields Rise Following Trump’s 'Highly Unlikely' Denial to Fire Fed Chair Powell

Gold prices experienced volatility this week amid uncertainty surrounding U.S. President Donald Trump's intentions toward Federal Reserve Chair Jerome Powell. On Wednesday, gold prices initially surged following reports that Trump planned to dismiss Powell. However, the gains were trimmed after Trump denied these claims, stating it was "highly unlikely" he would fire Powell. This clarification led to a firmer U.S. dollar and a rebound in Treasury yields, which in turn pressured gold prices downward on Thursday. The dollar broadly strengthened following the denial, stabilizing after a turbulent session earlier in the week.