Gold prices fell on Wednesday amid a rising dollar, although renewed fears about the independence of the US central bank after President Donald Trump's threat to fire Federal Reserve Board member Lisa Cook provided support for gold bullion, UNN reports with reference to Reuters.
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Spot gold prices fell 0.5% to $3375.06 per ounce at 05:08 GMT (08:08 Kyiv time), reaching their highest level since August 11 on Tuesday.
US gold futures for December delivery fell 0.2% to $3425.30.
The dollar index rose by approximately 0.3% against other currencies, making gold less attractive to holders of other currencies.
"Short-term speculators are now taking a small profit. Nevertheless, gold continues to be supported, especially as we begin to see a much clearer 'dovish' stance from the Federal Reserve," said OANDA senior market analyst Kelvin Wong.
"In the near term, we may see a potential increase in price pressure aimed at testing the $3400 level, above which will be $3435," he noted.
Trump said he was firing Cook over alleged violations in obtaining mortgage loans, which could test presidential authority over the US Federal Reserve, the publication writes. In response, Cook said Trump had no authority to fire her from the central bank, and she would not resign.
Trump has been pushing the US Central Bank to cut rates and has repeatedly criticized Fed Chairman Jerome Powell for acting too slowly.
Now the main focus is on the Consumer Price Index (CPI), the Fed's preferred inflation indicator, which is due to be released on Friday for more data on the interest rate trajectory after Powell's dovish statements at last week's symposium.
According to the CME FedWatch Tool, markets are now pricing in an 87% probability of a quarter-point rate cut at the Fed's policy meeting on September 17.
Non-yielding gold usually performs well in low interest rate environments.
Spot silver fell 0.4% to $38.42 per ounce, platinum remained at $1348.20, and palladium rose 0.5% to $1098.96.