By: Economy Middle east

Gold prices dipped on Wednesday, influenced by a slightly stronger dollar, as investors hesitated to make significant commitments ahead of U.S. President Donald Trump’s forthcoming decisions regarding Federal Reserve appointments.

In Dubai, gold rates saw a slight decline, with 24-carat gold priced at AED407.00 and 21-carat gold falling to AED377.00. Furthermore, 21-carat gold adjusted downward to AED361.50, while 18-carat gold decreased to AED309.75.

Spot gold was down 0.1 percent at $3,376.01 per ounce, as of 03:12 GMT, following a near two-week high achieved on Tuesday. Spot gold is currently trading above $3,374.6. Meanwhile, U.S. gold futures declined by 0.1 percent to $3,431.10 (currently trading above $3,429.3). The dollar rebounded from a one-week low reached in the prior session, diminishing gold’s attractiveness to holders of other currencies.

Trade tensions with India

On Tuesday, Trump indicated that he would soon announce decisions regarding a short-term substitute for Fed Governor Adriana Kugler, who resigned on Friday, as well as his selection for the next Fed chair. The CME FedWatch tool currently estimates the likelihood of a September rate cut at nearly 87 percent, following last Friday’s disappointing employment growth data, which prompted Trump to dismiss the commissioner of the U.S. Bureau of Labor Statistics (BLS).

Trump has eliminated Secretary of the Treasury Scott Bessent from consideration as his choice to succeed Federal Reserve Chair Jerome Powell.

Trump, who has consistently criticized Powell for not acting swiftly enough to reduce interest rates, stated on Tuesday that Bessent preferred to remain in his current position. “I love Scott, but he wants to stay where he is,” Trump remarked during an interview with CNBC, noting that Bessent was performing a “great job” and had conveyed to him just the day before that he did not seek the chairmanship.

The president indicated that he has four potential candidates in mind to replace Powell, whose term concludes in May. Among them are Kevin Warsh, a former member of the Fed’s seven-member board of governors, and Kevin Hassett, the director of the White House National Economic Council.

Trump mentioned that he might take advantage of the opportunity to fill the vacancy left by Adriana D Kugler, who announced her early resignation from the board last week. This would allow him to install his choice for chair on the board prior to Powell’s exit.

“I’m going to make the decision soon,” Trump added.

In trade matters, Trump reiterated threats to increase tariffs on goods imported from India due to its purchases of Russian oil, while New Delhi labeled his remarks as “unjustified” and pledged to safeguard its economic interests, further straining the trade relationship between the two nations.

In other news, the Perth Mint reported a 33 percent decline in gold product sales for July compared to the previous month, while silver sales dropped to a six-month low, according to the refiner’s statement on Wednesday. Spot silver remained steady at $37.82 per ounce, platinum decreased by 0.5 percent to $1,313.94, and palladium fell by 1 percent to $1,164.15.

Read more: Dubai 24-carat gold price today up to AED407.50, global rates rise as U.S. jobs data boosts Fed rate cut

Fed rate cut probabilities

Recent figures from the World Gold Council and Trading Economics indicate that gold prices have risen by over 41 percent compared to the same period last year, reaching around $3,375 per ounce on August 6, 2025, although showing minor daily fluctuations.

According to the CME FedWatch Tool, the probability of a Federal Reserve rate cut at the September 2025 FOMC meeting surged to 82.6 percent or higher, driven by the unexpectedly weak July nonfarm payroll report and ongoing uncertainty about Fed leadership appointments. These forecasts are closely tracked by market participants as they gauge the likely direction of U.S. monetary policy.

For the full month, Perth Mint released its official report stating that July gold sales dropped to 21,891 ounces, a 33 percent decrease from June, while silver sales also declined 2.5 percent month-on-month to 452,132 ounces—marking the lowest monthly sales for both metals so far in 2025. The Perth Mint, owned by the Government of Western Australia and the world’s largest producer of newly mined gold, attributed the drop partly to typical seasonal slowdowns and softer safe-haven demand as global trade tensions momentarily eased.

Institutional analysts, including those from ING and TD Securities, now forecast the average gold price for the remainder of 2025 at $3,500–3,675 per ounce, pointing to continued support from geopolitical tensions, persistent U.S. policy uncertainty, and sustained central bank demand, especially from countries like China, whose gold holdings rose to 2,640 tons earlier this year.

Meanwhile, the U.S. trade deficit shrank to a 21-month low, according to the Commerce Department, but service sector growth slowed as indicated by the sharp decline in the ISM Services PMI to 50.1, which has contributed to volatile sentiment in precious metals markets.