Gold prices paused after a two-day climb as traders awaited a critical U.S. inflation report that could signal the Federal Reserve’s next move on interest rates.
The metal held near $3,395 an ounce, with all eyes on Friday’s Personal Consumption Expenditures (PCE) data – the Fed’s preferred inflation gauge. A strong reading could pressure the central bank to delay rate cuts, which typically hurts gold.
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The market is still betting on a high probability of a cut next month. However, concerns are growing over the Fed’s independence after President Trump attempted to remove Governor Lisa Cook. A less independent Fed could shake investor confidence and potentially boost gold’s appeal as a safe haven.
Meanwhile, silver, platinum, and palladium all saw gains.
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