Gold prices fell on Wednesday on the strength of the dollar, despite renewed concerns about the independence of the Federal Reserve after President Donald Trump threatened to remove Lisa Cook from the board.
Spot gold fell 0.2 percent to $3,384.49 an ounce, after hitting its highest since Aug. 11 on Tuesday, and U.S. gold futures settled for a December delivery of $3,344.20.
The dollar index rose by 0.2% against a basket of major currencies, reducing the attractiveness of gold to holders of other currencies.
Trump said he had decided to fire Cook over alleged irregularities in obtaining mortgages, a move that could test the president’s authority over the Federal Reserve.
In response, Cook said Trump did not have the authority to fire her from the U.S. central bank and confirmed she would not resign.
Trump has been pressing the Fed to cut interest rates and has repeatedly criticized Fed Chairman Jerome Powell for being late in taking the step.
