The post Gold hits 2-month high as Fed independence debate sparks safe-haven demand appeared on BitcoinEthereumNews.com.

Gold reverses losses on Friday, climbing to a 2-month high near $3,450. Despite a firmer US Dollar, bullion found renewed demand as traders maintained bets on Fed easing. US Core PCE rose 0.3% MoM and 2.9% YoY in July, while headline PCE gained 0.2% MoM and held steady at 2.6% YoY. Gold (XAU/USD) reverses course on Friday, erasing intraday losses and climbing back to fresh highs. The precious metal is now trading near $3,447, its strongest level since June 16, after the US Personal Consumption Expenditures (PCE) inflation report came broadly in line with expectations. A softer tone in the US Dollar (USD) helped underpin bullion, with traders maintaining bets on monetary policy easing in September. At the time of writing, XAU/USD is up around 0.85% on the day, recovering sharply from early weakness near $3,404 in the European session. The metal remains on track to secure solid monthly gains, supported by safe-haven flows, Fed policy expectations, and persistent geopolitical and economic uncertainty. Concerns over the Fed’s independence have further bolstered its appeal, and short-term corrections are likely to be viewed as dip-buying opportunities within the broader bullish trend. Data from the Bureau of Economic Analysis showed that the Core PCE Price Index rose 0.3% month-on-month in July, matching forecasts and unchanged from June’s pace. On a yearly basis, core inflation edged up to 2.9% from 2.8%, marking its highest level since February. Headline PCE increased 0.2% MoM, in line with estimates but slightly softer than June’s 0.3%, while the yearly rate held steady at 2.6%. Market movers: Greenback holds ground, yields stabilize, markets eye US inflation data The US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, is holding firm after a three-day decline. At the time of writing, the index trades near…

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Filed under: News - @ August 30, 2025 7:25 am