Gold started trading this week reaching a high by jumping 2.56% to surpass $3,440 due to uncertainty about the threat of restrictions on the Fed's freedom to determine their next policy decisions.
At 9.20 am, the price of gold was at $3,440, up 0.45% since it opened in early trading on Tuesday in the Asian session.
Demand for the precious yellow metal increased as President Donald Trump continued to put pressure on the Fed by considering Chairman Jerome Powell's decision to be a mistake and slow to cut interest rates.
Last week, Powell said that the US central bank still needs to remain cautious to see how far the potential for inflation occurs.
They see many challenging scenarios in the mission to ease policy in a tense situation.
The growing tension between Trump and Powell, along with controversial trade policies, weighed on the Greenback, according to the US Dollar Index (DXY) which fell to a three-year low of 97.92.
Currently, market participants are awaiting several speeches from Fed officials to see what their next policy decisions are likely to be.
