Gold Price Forecast: XAU/USD slips to near $3,380 on resilient US Dollar

• Gold price declines as the US Dollar holds gains during the European hours.
• The safe-haven metal may attract buyers amid rising Fed concerns.
• Non-interest-bearing assets may draw demand as Fed Governor Cook's departure boosts rate-cut expectations.

Gold price (XAU/USD) depreciates after registering more than three-quarters of losses in the previous session, trading around $3,380 per troy ounce during the European hours on Wednesday. The price of the dollar-denominated Gold struggles as the US Dollar (USD) shows resilience despite rising concerns over the United States (US) Federal Reserve (Fed) independence.

However, the Gold price may regain its ground due to increased safe-haven demand. Traders assess the latest headlines surrounding the escalating feud between US President Donald Trump and the Federal Reserve.

Fed Governor Lisa Cook will reportedly file a lawsuit challenging her removal by US President Donald Trump. While speaking at a Cabinet meeting on Tuesday, Trump noted that he is prepared to abide by any court decision but indicated he was not concerned about Cook's challenge.

Non-interest-bearing assets, including Gold, may attract buyers as the dismissal of Fed Governor Cook could increase the likelihood of heavy interest rate cuts, given Trump's ongoing pressure on the central bank to reduce borrowing costs. It is worth noting that lower interest rates could prompt investors to pick precious metals to gain better returns.

Traders are now pricing in more than 87% odds for a cut of at least a quarter-point at the Fed's September meeting, up from 84% previous day, according to the CME FedWatch tool. Focus will shift toward the upcoming release of the Q2 US Gross Domestic Product Annualized and July Personal Consumption Expenditures Price Index data, the Fed's preferred inflation gauge, due later this week.