India, July 17 -- Gold prices traded lower on Thursday as the dollar strengthened on eased market tensions.
Spot gold dropped half a percent to $3,329.59 per ounce in European trade while U.S. gold futures for August delivery were down 0.6 percent at $3,337.70.
The dollar was on the back foot as U.S. Treasury yields steadied after falling on Wednesday.
Fed independence worries eased after U.S. President Donald Trump denied that he plans to fire Federal Reserve Chairman Jerome Powell.
"We're not planning on doing it," he said Wednesday at the White House. "I don't rule out anything," he added, "but I think it's highly unlikely, unless he has to leave for fraud."
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