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Markets watch Fed appointments as they see gold prices drop amid dollar gains

On Wednesday, gold prices fell on a stronger dollar. Investors held off on making large bets before Donald Trump made his decision about the Federal Reserve.

As of 0312 GMT on Wednesday, spot gold was down by 0.1%, at $3,376.01 an ounce. It had hit a two-week high the day before. U.S. Gold Futures dropped 0.1% to $3431.10.

The dollar recovered from the one-week low it hit in the previous session. This reduced gold's appeal for other currency holders.

We see that gold is con

"We are solidifying and have a slight upward bias," Brian Lan, Singapore's managing director of GoldSilver Central said.

We expect gold to test a higher trading range like $3,393 or $3,400.

Trump said on Tuesday that he will announce his decision on the short-term replacement of Fed Governor Adriana Kulgler, who announced on Friday her resignation, as well as on his choice for the next Fed Chair.

CME FedWatch now places the odds of a cut in September at almost 87% after Friday's employment data that was weaker than expected, which led to Trump firing the Commissioner of the U.S. Bureau of Labor Statistics.

Trump threatened again to increase tariffs on Indian goods over their Russian oil purchases. New Delhi, however, called the attack "unjustified," and pledged to protect its own economic interests. This further widened the trade gap between the two nations.

The refiner reported on Wednesday that the Perth Mint saw its gold sales fall 33% from the previous months, and silver sales drop to a six month low.

Silver spot was unchanged at 37.82 cents per ounce. Platinum fell 0.5% to 1,313.94 dollars and palladium dropped 1% to 1,164.15 dollars. (Reporting and editing by Anushree Mokherjee in Bengaluru, Brijesh Patel in New Delhi)

(source: Reuters)