Ammon News - Gold prices fell more than 1% on Wednesday as U.S. President Donald Trump backed down from threats to dismiss Federal Reserve Chair Jerome Powell and expressed optimism for a trade deal with China, denting bullion's safe-haven appeal.

Spot gold fell 1.2% to $3,339.53 an ounce by 0428 GMT. U.S. gold futures fell 2% to $3,349.80.

U.S. stocks and the dollar rebounded after Trump on Tuesday withdrew his threats to fire Powell after days of intensifying criticism of the central bank chief for not cutting interest rates.

A stronger dollar makes gold more expensive for overseas buyers.

Trump also expressed optimism that a trade deal with China could "substantially" reduce tariffs on Chinese goods, hinting that the final deal will not "be anywhere near" current tariff rates.

U.S. Treasury Secretary Scott Bessent said he believes there will be a de-escalation in U.S.-China trade tensions, but negotiations with Beijing have not yet started and would be a "slog".

Spot silver rose 0.6% to $32.70 an ounce, platinum was up 0.1% at $959.72 and palladium lost 0.2% to $934.26. Reuters