WASHINGTON (dpa-AFX) - Gold prices extended yesterday's gains on Wednesday as concerns about US President Donald Trump's assertion of influence over the Federal Reserve increased with the ouster of a Fed governor.
Front Month Comex Gold for August delivery climbed $16.00 (or 0.47%) to $3,404.60 per troy ounce.
Front Month Comex Silver for August delivery rose 10.70 cents (or 0.28%) to $38.689 per troy ounce.
On Monday, on his social media platform Truth Social, Trump posted a letter to Fed Governor Lisa Cook saying that she was removed from her post due to allegations of falsifying records to obtain a mortgage.
In response, Cook has vowed to file a legal case challenging her removal. The Fed stated yesterday that it would abide by any court decision.
At the recent Jackson Hole Symposium, Fed Chair Jerome Powell indirectly indicated interest rate cuts are coming. Trump has repeatedly stated his eagerness to have lower borrowing rates.
Now, traders have expressed concern that Monday's move by Trump could be a way to assert his influence over the central bank.
With the Fed's independence now in question, investors prefer a 'wait-and-watch' approach.
On the data front today, the Mortgage Bankers Association of America released the Mortgage Market Index revealing a decrease to 275.80 points in the week ended August 22 from 277.10 points in the previous week.
The MBA Purchase Index increased to 163.80 points in the week ended August 22 from 160.30 points in the previous week.
The market is awaiting the Personal Consumption Expenditures price index data due to be released this Friday. These figures are Fed's preferred inflation gauge and could impact the decision on interest rates.
When interest rates are lower, non-yielding assets like gold typically attract global investors.
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