Gold Prices Deepen Losses, Dropping Below $3,300 Per Ounce

Sana'a: Gold prices fell about three percent on Wednesday after US President Donald Trump backed down from his threat to fire Federal Reserve Chairman Jerome Powell, expressing optimism about the possibility of reaching a trade agreement with China. This negatively impacted the yellow metal's safe-haven appeal. Spot gold fell $102, or three percent, to $3,279.27 per ounce at 3:42 p.m. GMT. U.S. gold futures fell $132, or 3.86 percent, to $3,287.50. According to Yemen News Agency, the dollar and U.S. stocks rose again after Trump's remarks, in which he softened his threats against the Federal Reserve, days after criticizing him for not cutting interest rates. A stronger dollar makes gold more expensive for holders of other currencies. Trump expressed optimism about the possibility of a "significant" reduction in tariffs on Chinese imports if a trade agreement is reached, but stressed that the agreement would not reduce tariffs to "zero."