Gold falls as Trump backs down from threat to fire Fed chief

Gold prices fell on Wednesday as U.S. President Donald Trump retracted his threats to dismiss Federal Reserve Chair Jerome Powell and expressed optimism for a trade deal with China, denting bullion's safe-haven appeal. The hint of U.S.-China negotiations and Trump backing down his threat to remove Powell "caused the sell off in gold price to hit a kind of a very extreme oversold level in the short term perspective here," said Kelvin Wong, senior market analyst, Asia Pacific at OANDA. 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.