Gold Steady After Two-Day Gain on Worries Over Fed Independence

Gold was steady after a two-day gain on concern over the independence of the Federal Reserve and inflation risks in the US.

Fed Governor Lisa Cook President Donald Trump’s move to fire her due to allegations that she falsified mortgage documents. Her lawyer said the attempt to oust her “lacks any factual or legal basis.”

If Trump is successful in removing Cook it would give him an opportunity to secure a four-person majority on the Fed’s seven-member board. The president has repeatedly called for interest-rate cuts, and the market is worried that a less independent monetary authority could erode investor confidence in the US and lead to faster inflation.

Gold has been largely range-bound since hitting a record high above $3,500 an ounce in April, with the market looking for fresh catalysts following a blistering rally last year and in the early part of 2025. Trade and geopolitical friction, inflows to exchange-traded funds and central bank efforts to diversify away from the dollar have aided bullion.

Gold dipped 0.2% to $3,391.71 an ounce as of 9:04 a.m. Singapore time. The declined 0.1%. Silver and palladium were flat, while platinum edged lower.