Gold Steady, Eyes on Fed Drama
Gold prices were nearly flat after a two-day rally, amid concerns about the Fed's independence and the risk of US inflation. At 9:04 a.m. Singapore time, spot gold edged down 0.2% to $3,391.71/oz, while the Bloomberg Dollar Spot Index weakened 0.1%. In other metals, silver and palladium were flat, while platinum weakened slightly.
Sentiment pressure came from President Donald Trump's unprecedented move to fire Fed Chair Lisa Cook over allegations of falsifying mortgage documents. Cook has stated she will fight the move in court, and her lawyer called the dismissal "without any basis in fact or law." This issue has fueled market concerns that monetary policy could become politically motivated.
If Trump succeeds in ousting Cook, he could secure a four-seat majority on the seven-member Board of Governors. Given the president's repeated calls for interest rate cuts, markets are wary: a less independent monetary authority is feared to erode investor confidence in US assets and accelerate inflation—a combination that is typically favorable to gold.
Technically, gold has remained in a range since its record high above $3,500/oz in April. The market is awaiting new catalysts after last year's sharp rally through early 2025. For medium-term support, gold is supported by trade and geopolitical frictions, flows into gold-backed ETFs, and central bank diversification away from the US dollar. (ayu)
Source: Newsmaker.id
