Stability of Gold Prices at $3,390 per Ounce Amid Anticipation of U.S. Personal Consumption Data

SadaNews - Gold prices stabilized after a rise on Tuesday due to concerns about the independence of the central bank and inflation risks, following U.S. President Donald Trump's efforts to dismiss a member of the Federal Reserve.

Gold bullion traded above the $3,390 per ounce level after a 0.8% increase on Tuesday, as Trump indicated his readiness for a legal battle with Lisa Cook, who faces allegations of mortgage fraud, after her lawyer pledged to file a lawsuit.

If the president, who is calling for interest rate cuts, succeeds in dismissing Cook, it would provide him with an opportunity to secure a majority on the Board of Governors.

So far, the Federal Reserve has resisted the White House's pressure to lower borrowing costs, although Jerome Powell, the chair, cautiously opened the door on Friday for a potential cut next month. There are concerns that an early interest rate cut cycle could fuel inflation and undermine confidence in the central bank, a scenario that would boost demand for safe havens like gold.

Strong Gains Since the Beginning of the Year

The precious metal has risen by more than a quarter this year, with the majority of these gains occurring in the first four months, as rising geopolitical and trade tensions have fueled demand.

Gold has remained on a stable path since peaking above $3,500 per ounce in April, although some major banks, including Citigroup and UBS Group's wealth management unit, expect further gains later this year.

Spot gold was stable at $3,392.55 per ounce as of 8:31 AM in Singapore. The Bloomberg Dollar Index was stable after a 0.2% decline on Tuesday. Palladium rose, while both silver and platinum remained stable.

The market is awaiting U.S. personal consumption data set to be released on Friday. The index, excluding food and energy, is expected to accelerate at its fastest annual pace in five years, which may limit the Fed's ability to cut interest rates.