NEW YORK (Reuters) - Gold futures closed higher on Tuesday as the US dollar rebounded against other major currencies after US President Donald Trump renewed his assault on US Federal Reserve policies.
"The only problem with our economy is the Federal Reserve. They do not have any sense of the market, they do not understand the necessary trade wars, the strong dollar or even the Democrats' blocking of the budget because of the border dispute," Trump wrote on Twitter. "He said.
"The Fed is like a strong golfer who can not win because he lacks touch, he can not put the ball in the hole," he said.
The Trump news came in the wake of media reports that Trump and his legal advisers were consulting on the possibility of removing the chairman of the board, Jerome Powell, because of the Federal Reserve's plan to continue the gradual increase in interest rates.
US Treasury Secretary Stephen Munchon last Saturday denied the reports, and wrote on Twitter that Trump told him he did not agree with the Fed policy but never suggested Powell's dismissal.
"I spoke with President Donald Trump and he totally disagreed with the Reserve Bank policy, and I think that increasing interest rates and reducing the bond portfolio of the Council is absolutely horrific at this time, especially in view of the major trade negotiations I am currently engaged in, I propose to expel the President of the Council, Jay Powell, and I do not think I have the right to do this. "
The dollar index fell against major currencies by nearly 4% during the day.
The yellow metal finished trading today at $ 13.70, up 1.1% to $ 1271,801 an ounce next February.
Gold ended last Friday's trading session with a loss of $ 0.80, or 0.8%, to $ 1258.10 an ounce.
Silver rose $ 0.12, or 1 per cent, to $ 14,820 an ounce in March, while copper fell 0.3 per cent to $ 2,661 per pound in March.