The yellow metal maintained its price consolidation around $3,400 at the end of Tuesday's trading, supported by the weakness of the US dollar and lingering doubts about the independence of the Fed after President Donald Trump fired Governor Lisa Cook.
At 9.20 am, gold prices were at $3,385.88, down 0.25% since it opened early Wednesday in Asian trading.
The latest internal conflict supported the higher movement in the safe-haven metal, with US yields retreating in the short term and giving up Monday's surge.
Market participants are still betting on the expectation of a September interest rate cut, following the Jackson Hole statement by Jerome Powell's 'dovish' tone last week.
In addition, the backdrop is now that investors are evaluating softer US data after the July Durable Goods report fell 2.8% and the Conference Board Consumer Confidence fell in August.
The report continues to strengthen the safe-haven demand for gold to remain positive and put downward pressure on the US dollar.
