The price of the traditional yellow metal rose in trading on Wednesday after US President Donald Trump continued to put pressure on the Federal Reserve (Fed) by demanding that Fed Governor Lisa Cook resign following an investigation into mortgage fraud.
The threat revived the Fed's restrictions on freedom that pushed XAU/USD higher to around $3,350.
At 9.20 am, gold prices were at $3,343.27, down 0.16% since it opened in early trading Thursday in the Asian session.
The latest US domestic political issues weighed on the US dollar, with the US Dollar Index (DXY) down 0.05% at 98.21 points.
A Bloomberg report revealed that Federal Housing Finance Agency (FHFA) Director Bill Pulte leaked information that Lisa Cook falsified bank documents and property records to obtain better loan terms, potentially committing mortgage fraud under criminal status.
The Wall Street Journal revealed that Trump told his officials that he was trying to fire Cook in response to the fraud allegations.
In addition, gold investors are eyeing the release of the latest minutes of the Fed's August meeting, where the central bank decided to keep rates unchanged, despite opposition to a 25 basis point rate cut.
Later this week, US economic papers will feature the release of Initial Jobless Claims data and Fed Chairman Jerome Powell's speech in Jackson Hole.
