According to Bloomberg, gold prices have been on the upswing after President Donald Trump revealed his selection of Stephen Miran to take a seat on the Federal Reserve Board. Miran, who currently leads the Council of Economic Advisers, will need Senate approval for the position.
During his announcement on Wednesday, Trump hinted that he might nominate someone temporarily for the role instead of a designated successor for the Fed Chair, Jerome Powell. Trump’s ongoing critiques of Powell’s monetary policies seem to influence this choice.
Miran’s appointment is noteworthy because he will serve only if confirmed and will fill the remaining term of Adriana Kugler, whose resignation opened up the position and finishes in January.
Following the announcement, the US dollar dipped, which provided a boost to gold prices, rising by up to 0.9%.
Trump’s aim is to have a policymaker who supports his preference for lower interest rates, which tends to favor gold and other precious metals.
This year, gold has made impressive gains, increasing by 30%. Most of this increase took place in the early months due to persistent geopolitical issues and trade disputes affecting global markets.
As of 4:22 p.m. in New York, spot gold prices were up by 0.9%, trading at $3,400.06 per ounce. Additionally, the Bloomberg Dollar Spot Index saw a slight decline of 0.1%. In parallel, prices of silver, platinum, and palladium also experienced an uptick.
