Gold rebounds as US Dollar weakens, Trump calls for Fed Governor Cook’s resignation
NEW YORK (August 20) Gold (XAU/USD) is staging a sharp rebound on Wednesday, trading around $3,340 during the early American session after briefly falling to a three-week low of $3,311 in early Asian trade. The recovery comes as the US Dollar (USD) pulls back from a one-week high, while traders brace for the release of the Federal Reserve’s (Fed) July meeting minutes later in the day.
Gold prices are taking a breather after Tuesday’s sharp decline, as improving risk sentiment eases immediate safe-haven demand. A major meeting at the White House between US President Donald Trump, Ukrainian President Volodymyr Zelenskyy, and top European leaders has revived hopes for a diplomatic breakthrough in the Russia-Ukraine conflict. Market attention is now turning toward the possibility of a trilateral summit involving Trump, Russian President Vladimir Putin, and Zelenskyy, which Trump hinted could be in the works.
However, Moscow has not yet committed to such talks. Russian Foreign Minister Sergey Lavrov said any potential meeting would need to be “prepared gradually,” starting at the expert level before progressing through formal diplomatic channels. While no timeline has been established, the renewed engagement has lifted broader risk sentiment. That said, lingering geopolitical uncertainty continues to provide a modest cushion for Gold, as some safe-haven positioning remains in place.
Adding to the cautious tone, traders are also awaiting the release of the FOMC July meeting Minutes, which could shed light on the internal policy debate. The meeting stood out as the first since 1993 to feature two dissenting votes on the Board of Governors, with Christopher Waller and Michelle Bowman advocating for a 25 basis point (bps) rate cut instead of holding rates steady. The minutes may reveal how deep the divisions run within the Fed and whether a shift toward easing is gaining traction, which could significantly influence Gold in the near term. For now, the precious metal remains confined to a narrow range, with technical resistance near $3,330 limiting further upside.
FXStreet
