Spot Gold held not far from a 2-week peak of $3,393.74 on Wednesday on renewed concerns over the Federal Reserve’s independence.
Yet, a firmer US Dollar was limiting Gold’s upside.
US President Donald Trump said in a social media post this week he would fire Federal Reserve Governor Lisa Cook over allegations of mortgage fraud.
In response, Cook said that Trump had no authority to fire her and that she would not resign.
Market players are now expecting the key US PCE inflation figures for more guidance on the Federal Reserve’s policy trajectory.
Markets are pricing in about an 87% chance of a 25 basis point rate cut in September.
“Short-term speculators are taking a bit of profit right now. However, gold is still being supported especially as we start to see a much more clear dovish stance from the Federal Reserve,” OANDA senior market analyst Kelvin Wong was quoted as saying by Reuters.
“We could see in the near term there is still potential upward pressure to test $3,400, above it will be the $3,435 level.”
Spot Gold was last down 0.54% on the day to trade at $3,375.57 per troy ounce.
The US Dollar Index was last up 0.34% to 98.545.
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