Gold price recovered some ground on Tuesday, climbing 0.20% following the release of July's inflation print in the United States (US). Although prices had risen, Bullion's was supported by US President Donald Trump's remarks threatening the Federal Reserve's (Fed) independence. The XAU/USD trades at $3,348 at the time of writing.

The US Consumer Price Index (CPI) for July missed estimates in its headline print YoY and increased the odds for a rate cut. However, the core CPI, which excludes volatile items, jumped above the 3% threshold YoY.

Initially, XAU/USD fell toward its daily lows but was boosted by Trump's comments on Jerome Powell, calling the Fed Chair too late at cutting rates and threatening to sue him regarding the renovation of the Fed buildings.

On the remarks, Bullion prices rose from around daily lows near $3,331 toward $3,347 before rising toward their daily high of $3,359.

Gold's last leg up was courtesy of EJ Antoni, the economist nominated by Trump to head the Bureau of Labor Statistics (BLS), who suggested suspending monthly Nonfarm Payrolls (NFP)data. He argued that its underlying methodology, economic modeling, and statistical assumptions are fundamentally flawed. Instead, Antoni proposes quarterly data.

In the meantime, a slew of Fed officials crossed the wires, led by the Richmond Fed's Thomas Barkin and the Kansas City Fed's Jeffrey Schmid. It's worth noting that Trump's Fed board nominee, Stephen Miran, also crossed the wires.

Traders will eye further data releases as the US schedule remains busy. Ahead awaits PPI data, Jobless Claims for the week ending August 9, Retail Sales, and the University of Michigan Consumer Sentiment index.

Source: Fxstreet