Fed Governor Lisa Cook to file lawsuit against Trump’s firing attempt <\/p>\n
Markets expect 87% chance of 25-basis point rate cut next month <\/p>\n
U.S. PCE data due on Friday <\/p>\n
(Updates prices for US mid-session trading) <\/p>\n
By Sarah Qureshi and Anushree Mukherjee <\/p>\n
Aug 27 (Reuters) – Gold slipped on Wednesday as the dollar and Treasury yields firmed, but the losses were limited by safe-haven demand amid lingering concerns about the U.S. central bank’s independence after President Donald Trump’s efforts to fire a Fed governor. <\/p>\n
Spot gold was down 0.1% to $3,388.15 per ounce at 1210 p.m. ET (16:10 GMT). However, U.S. gold futures for December delivery rose 0.2% to $3,438.30. <\/p>\n
The dollar index climbed 0.2% against a basket of major currencies, making greenback-priced gold more expensive for overseas buyers. <\/p>\n
“We’re seeing a stronger U.S. dollar index today and a slight uptick in bond yields … yields are putting selling pressure on the gold and silver markets,” said Jim Wyckoff, senior analyst at Kitco Metals. <\/p>\n
U.S. Treasury yields edged up 0.4%, weighing on non-yielding gold’s appeal. <\/p>\n
Trump said earlier this week he was removing Federal Reserve Governor Lisa Cook from her position on the Fed’s board of directors. Meanwhile, Cook’s lawyer said she would file a lawsuit to prevent Trump from firing her, kicking off a potentially protracted legal fight. <\/p>\n
Gold prices rose to a more than two-week high on Tuesday, following Trump’s attempt to fire Cook. <\/p>\n
Investors now await Thursday’s GDP data and Friday’s Personal Consumption Expenditures – the Fed’s preferred inflation gauge – for cues on the interest-rate path. Economists polled by Reuters expect the PCE price index to rise 2.6% in July, matching June’s rise. <\/p>\n
“If (the PCE data) is a miss showing stronger inflation, that might begin to call into question whether the Fed’s going to be able to cut interest rates in September. But I suspect it would take an awfully strong inflation number to preempt the Fed from cutting rates in September,” Wyckoff said. <\/p>\n
Markets are currently anticipating a more than 87% chance of a 25-basis-point rate cut at the Fed’s policy meeting next month, according to CME FedWatch Tool. <\/p>\n
Elsewhere, spot silver edged 0.3% lower to $38.47 per ounce, platinum slipped 0.3% to $1,344.20, and palladium dropped 0.6% to $1,087.10. (Reporting by Sarah Qureshi and Anushree Mukherjee in Bengaluru; Editing by Pooja Desai and Mohammed Safi Shamsi) <\/p>\n","protected":false},"excerpt":{"rendered":"Fed Governor Lisa Cook to file lawsuit against Trump’s firing attempt Markets expect 87% chance of 25-basis point…\n","protected":false},"author":3,"featured_media":20119,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[64,101928,21764,101930,135,101929,101931,67,132,68],"class_list":{"0":"post-180465","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-fed-governor-lisa-cook","10":"tag-gold-prices","11":"tag-interest-rate-cut","12":"tag-markets","13":"tag-trump-firing-attempt","14":"tag-u-s-pce-data","15":"tag-united-states","16":"tag-unitedstates","17":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115102317963544332","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/180465","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=180465"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/180465\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/20119"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=180465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=180465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=180465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}