Gold Declines as Dollar Rises, Fed Tensions Limit Losses
Gold prices slipped on Wednesday under pressure from a stronger U.S. dollar, while political tensions surrounding the Federal Reserve helped prevent sharper losses.
By 02:23 GMT, spot gold was down 0.2% at $3,384.49 per ounce, after reaching its highest level since August 11 in the previous session. U.S. gold futures for December delivery held steady at $3,434.20.
The U.S. dollar index gained about 0.2% against a basket of major currencies, reducing gold’s appeal to holders of other currencies. Despite this, gold remained supported by expectations of a more accommodative stance from the Federal Reserve, with near-term upside pressure seen toward the $3,400 level, and potentially $3,435 if surpassed.
The limited pullback came amid political uncertainty after U.S. President Donald Trump announced his intention to dismiss Federal Reserve member Lisa Cook over alleged mortgage-related violations. The move fueled debate over the extent of presidential authority over the central bank, especially as Trump continues to push for faster interest rate cuts.
