Gold prices dipped slightly on Wednesday, pressured by a stronger U.S. dollar and rising Treasury yields. However, safe-haven demand offered some support as investors remained uneasy over the Federal Reserve’s independence following former President Donald Trump’s attempt to remove Fed Governor Lisa Cook.
Spot gold slipped 0.1% to $3,388.15 per ounce by 12:10 p.m. ET (16:10 GMT), while U.S. gold futures for December delivery inched up 0.2% to $3,438.30. The dollar index gained 0.2%, making dollar-denominated gold more expensive for international buyers.
Jim Wyckoff, senior analyst at Kitco Metals, noted that firmer bond yields and the stronger dollar were contributing to downward pressure on gold and silver markets. U.S. Treasury yields rose 0.4%, further weighing on gold, which offers no interest.
Trump’s move to oust Governor Cook has sparked legal action, raising fears of a lengthy court battle. Investors now turn their attention to key economic data, including Thursday’s GDP report and Friday’s PCE inflation data. Analysts expect July’s PCE to rise 2.6%, in line with June, which could influence the Fed’s next rate decision.
