WASHINGTON (dpa-AFX) - Gold ticked higher on Thursday as the dollar weakened after reports that U.S. President Donald Trump was considering replacing Federal Reserve Chair Jerome Powell as early as September or October.
Spot gold edged up by 0.3 percent to $3,340.49 per ounce in European trade while U.S. gold futures were up 0.3 percent at $3,352.65.
The U.S dollar weakened to a three-year low as concerns grow about the U.S. economy and the U.S. Federal Reserve's independence.
Frustrated at the slow pace of interest rate cuts, Trump is thinking of replacing Fed Chair Jerome Powell before the November elections, reports say.
During a press conference at the Hague, Trump said he has three or four people in mind to succeed Powell when his term expires next year.
'I know within three or four people. I mean he goes out pretty soon, fortunately, because I think he's terrible,' said Trump of Fed Chair Jerome Powell whose terms ends in May next year.
Looking ahead, trading later in the day may be impacted by reaction to U.S. reports on weekly jobless claims, durable goods orders and pending home sales.
The U.S. GDP report due later in the day and the Price Consumption Expenditure data coming up on Friday may provide additional clues on the Fed's rate trajectory.
Investors are currently anticipating 64 basis points worth of Fed rate cuts by the end of this year, with the next rate cut anticipated only in September.
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