Gold Gains After Trump Names Miran to Fill Seat on Fed Board
Gold extended gains after President Donald Trump said he had chosen Council of Economic Advisers Chairman Stephen Miran to serve as a Federal Reserve governor.
Trump said Wednesday he was likely to nominate a temporary governor to fill the seat, rather than a successor-in-waiting for Fed Chair Jerome Powell, who he has heavily criticized over monetary policy. Trump said that Miran, who will need to be confirmed by the US Senate, would only serve the expiring term of Fed Governor Adriana Kugler, which ends in January.
The dollar pushed lower following the nomination, helping lift bullion as much as 0.9%.
Kugler’s resignation last week gave an opportunity to Trump to install a policymaker who aligns with his demands for lower interest rates. Bullion typically benefits in a lower rate environment.
The precious metal has climbed 30% this year, though the bulk of those gains occurred in the first four months as geopolitical and trade tensions rattled the market.
Spot gold rose 0.9% to $3,400.06 an ounce as of 4:22 p.m. in New York. The Bloomberg Dollar Spot Index slipped 0.1%. Silver, platinum and palladium all gained.
Source : Bloomberg
