Gold maintains its strength near the two-week high
Gold prices witnessed some decline during today's trading on Wednesday to trade near the level of 3,380 dollars per ounce, but they still maintain their position near the two-week highs.
The yellow metal derives its support from the growing demand for it as a safe haven, amid rising concerns related to the independence of the US Federal Reserve and the political pressures surrounding it.
Concerns about the independence of the Federalist
These fears were renewed after former US President Donald Trump indicated his intention to dismiss Lisa Cook, one of the Fed governors, over mortgage-related charges.
Although her legal team confirmed its intention to take judicial steps to stop this dismissal, analysts warned that the implementation of the decision may accelerate the pace of interest rate cuts, in line with Trump's move towards a looser monetary policy and strengthening his influence on the central bank.
According to market estimates, there is an 87% probability of a quarter percentage point interest rate cut at the Fed's September meeting.
Mounting trade pressures
Trade tensions have increased globally as a US official confirmed that reaching a trade agreement with India before the deadline seems unlikely, which could pave the way for raising tariffs on Indian goods to 50%, while Indonesia has received exemptions for selected products.
Trump has also stepped up his rhetoric towards China, waving the imposition of high tariffs on its exports of rare metals, which is exacerbating tensions between the world's two largest economies.
Europe faces a political test
On the European continent, political risks have intensified with the French prime minister's insistence on pushing ahead with austerity plans, ahead of a confidence vote in parliament, which added more uncertainty to the European Economic and political landscape.
