Gold Rises on Fed Concerns
The price of gold (XAU/USD) rose to around $3,378 per troy ounce—nearing a two-week high at the start of the European session on Tuesday. This rise occurred amid market concerns about the independence of the Fed following reports that US President Donald Trump said he would remove Fed Chair Lisa Cook. This uncertainty typically drives interest in safe-haven assets like gold.
In addition to political factors, gold was also supported by expectations that the Fed will continue to cut interest rates. Lower interest rates reduce the opportunity cost of holding gold because yields on interest-bearing instruments become less attractive, thus supporting the price of the precious metal.
Looking ahead, the market awaits tonight's US data releases: Consumer Confidence (Conference Board), Durable Goods Orders, and the Richmond Fed Manufacturing Index. These data will provide clues about consumer purchasing power, the strength of durable goods orders, and regional manufacturing conditions—all factors that could influence the direction of the US dollar and risk appetite.
As the weekend approaches, focus shifts to major releases such as second-quarter GDP and the July PCE Price Index. If growth or inflation is stronger than expected, the US dollar (greenback) could potentially strengthen and put pressure on dollar-denominated gold prices. Conversely, weaker data could keep gold in demand. (ayu)
Source: Newsmaker.id
