Gold prices experienced a slight decline, falling below $3,380 per ounce after reaching a two-week high. This pullback occurred amid renewed anxieties surrounding the Federal Reserve’s autonomy and exposure to political influence, coupled with ongoing trade tensions between major global economies.
- Gold eased below $3,380 per ounce.
- President Trump is seeking to remove Governor Lisa Cook over alleged misconduct.
- Concerns are rising about the Fed’s independence.
- Markets now price in an 80% chance of a quarter-point rate cut in September.
- A US-India trade deal is unlikely before the deadline, which means tariffs on Indian goods will double.
- Trump threatened tariffs on China over rare-earth exports.
- Political risks are rising in Europe.
The subtle drop in price suggests a market reacting to uncertainty. The potential shift in monetary policy, coupled with trade disputes and international political instability, creates a complex environment influencing the demand and perceived value of gold. The confluence of these factors could lead to continued price volatility.