Get 100% ad-free experienceByOctaPublished 08/27/2025, 03:43 AMGold Still Near Highs—Fed Situation Keeps Buyers InterestedView all comments (0)0Gold is trading around $2,370 early Wednesday, just below a two-week high, supported by its safety appeal amid concerns over the Federal Reserve’s independence.Events: Gold pulled back slightly but remains near recent highs. Markets price in an 80% chance of a September Fed rate cut.Background: President Trump moved to oust Fed Governor Lisa Cook, triggering concerns over the central bank’s independence. Analysts warn political pressure could push the Fed toward looser policy.Possible outcome: If uncertainty around Fed policy or trade tensions with India and China escalates, demand for gold as a safe asset could strengthen further.Watch for more headlines on the Fed—any sign of political interference could keep XAUUSD in demand.EUR/USD in a tight range—will PCE tip the scales?The euro is trading sideways, holding between 1.1580 and 1.1750. Friday’s PCE price index could trigger a breakout.Events: EUR/USD has been consolidating in a tight band with no fresh data to drive direction.Background: Traders are watching for signs supporting or challenging the 87% chance of a 25-bp Fed rate cut in September.Possible outcome: Friday’s release of the PCE price index could trigger movement. As the Fed’s preferred inflation gauge, it may solidify expectations or force a rethinkWatch the Fed headlines—political interference fears may keep gold well supported.USD/JPY climbs—but political risk may cap gainsThe pair moved above 147.500, but traders are watching political headlines and upcoming Japanese data that could limit gains.Events. USD/JPY rose past 147.500 early Tuesday.Background. President Trump moved to oust Fed Governor Lisa Cook, triggering concerns over the central bank’s independence. At the same time, Japan’s domestic outlook looks steadier: support for Prime Minister Shigeru Ishiba rose 20% in a new poll, and top trade negotiator Akazawa heads to Washington this week.Possible outcome. If Tokyo CPI and retail sales data on Friday are strong, the yen could gain further traction and cap USD/JPY’s upside.Watch Friday’s Tokyo CPI and Japan retail sales. Strong data could strengthen the yen.Gold Still Near Highs—Fed Situation Keeps Buyers InterestedView all comments (0)0Latest commentsInstall Our AppScan QR code to install appRisk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.© 2007-2025 - Fusion Media Limited. All Rights Reserved.