Gold price remains steady on Wednesday, even though the Greenback recovered from earlier losses triggered by threats to the Federal Reserve's (Fed) independence. Nevertheless, Bullion sellers are not out of the woods as pressure from the White House continues. The XAU/USD trades at $3,397, up 0.12%.

The US economic docket remains light, except for remarks of New York Fed President John Williams, who said that rates can fall at some point but emphasized that only data would indicate if it is appropriate to reduce rates, based on the economy's performance.

In a CNBC interview, Williams added that every meeting "from my perspective is live," adding that risks of employment and inflation are "more in balance." He said the Fed is "going to just have to see how the data play out."

The Fed's next meeting is scheduled for September 16-17. Ahead of this date, there will be another jobs report, as well as two reports on inflation the Personal Consumption Expenditures (PCE) Price Index for July and the Consumer Price Index (CPI) for August before the Federal Open Market Committee (FOMC) convenes for its sixth meeting of the year.

Traders have priced in a 90% chance of a rate cut, according to the Prime Market Terminal interest rate probability tool.

JP Morgan analysts in a note said that "a weaker dollar should remain in focus, but we are more interested to see if this could catalyse a Gold breakout after a long period of consolidation."

The fight between the White House and its influence on the Fed could prompt traders to buy Bullion, which so far has failed to climb "decisively" above $3,400. If cleared, then traders would eye the June 16 peak of $3,452.

Ahead this week, Gold traders will eye the release of GDP data, Initial Jobless Claims, and the Fed's favorite inflation gauge, the Core PCE.

Source: Fxstreet