Gold prices cool after hitting over 2-week high.
Gold prices fell in Asian trade on Wednesday after rising to an over two-week high as U.S. President Donald Trump’s attempts to fire a Federal Reserve Governor sparked renewed concerns over the central bank’s independence.
The yellow metal had initially rallied on Trump’s late-Monday announcement that Fed Governor Lisa Cook be removed from her post immediately over allegations of mortgage fraud. The dollar tumbled after Trump’s move, also benefiting broader metal prices.
But the greenback recouped its losses, while Treasury yields also stabilized, as Cook and the Fed argued that Trump had no authority for the firing.
Spot gold fell 0.5% to $3,378.29 an ounce, while gold futures for October fell 0.1% to $3,428.70/oz by 00:23 ET (04:23 GMT).
Gold benefits from haven demand amid Trump-Fed feud
Gold’s rally this week came from traders seeking safe haven in the face of a potentially protracted legal battle between Trump and Cook.
Cook indicated that she will not step down from her position and will challenge her attempted removal in court, arguing that Trump had no cause to fire her. The Fed also echoed this notion.
Bitcoin price today ticks higher to $111k.
Bitcoin edged higher on Wednesday after hitting a seven-week low in the previous session, as risk appetite remained dim after U.S. President Donald Trump’s attempted firing of Federal Reserve Governor Lisa Cook, escalating worries over the central bank’s independence.
It fell to a seven-week low below $109,000 due to a significant whale trade, with reports showing 24,000 tokens liquidated.
Bitcoin has now retreated more than 10% from an August record peak above $124,000, erasing much of the rally built on bets the Fed would soon pivot to rate cuts.
Fed independence worries dampen risk appetite
Trump on Tuesday announced he had fired Cook, effective immediately, over allegations of mortgage fraud, accusing her of misrepresenting home-ownership status in 2021 loan documents.
Oil steady as investors eye Ukraine war.
Oil prices steadied on Wednesday, after falling in the previous session, as investors watched for fresh developments in the Ukraine war and weighed hefty new U.S. tariffs on India, the world’s third-biggest crude consumer.
Brent crude futures fell 9 cents to $67.13 per barrel at 0633 GMT, while West Texas Intermediate (WTI) crude futures were down 8 cents at $63.17.
Both contracts fell more than 2% on Tuesday after beginning the week at a two-week high.
“(There is) a lot of uncertainty over how the Ukraine stalemate might be resolved, which portends volatility for crude but likely in a relatively small range,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.
“Over the past week or so, much of the Ukraine peace discount has been reversed, but the market is also not ready to price in a major supply risk premium,” Hari added.
U.S. special envoy Steve Witkoff said on Tuesday he will meet Ukrainian representatives in New York this week, adding that Washington is also in talks with Russia as it seeks to end the war.
Additionally, U.S. President Donald Trump’s doubling of tariffs on goods from India to as much as 50% took effect as scheduled on Wednesday.
Trump has said the higher charges are a result of India’s Russian oil buying, which increased following Moscow’s invasion of Ukraine as Western sanctions led Russia to discount its cargoes.
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