Gold surged to a fresh record high on Wednesday, consolidating gains above the key $3,500 level, on growing expectations of a Federal Reserve rate cut this month and lingering political and economic risks.
Spot gold was up 0.1% at $3,537.29 per ounce, as of 0821 GMT, after hitting an all-time high of $3,546.99 earlier in the session. US gold futures for December delivery gained 0.4% to $3,604.90.
Adding to market uncertainty and potential trade tensions, US President Donald Trump's administration said it will ask the Supreme Court for an expedited ruling on tariffs that a US appeals court found to be illegal last week, reported Reuters.
"The tariff issues and roadblock provided by the Supreme Court will be a critical test for Trump, (and) irrespective of the outcome, gold provides a welcome respite from market turbulence for investors," said independent analyst Ross Norman.
"Rate cuts are starting to look baked in but questions are now arising whether there will be further cuts. Lower rates would stimulate economic activity in the US as well as further weaken the dollar ... providing a strong tailwind to gold," he added.
Trump has been exerting relentless pressure on the Fed to cut interest rates and publicly discussed firing Fed Chair Jerome Powell.
In a sharp escalation, Trump last month attempted to fire Fed Governor Lisa Cook, setting off a critical legal test over the Fed's ability to function without political interference.
Rate-cut expectations and worries over the Fed's independence have weighed on the US dollar, which is down more than 9% since the start of the year, making gold less expensive for overseas buyers.
Investors are pricing in a 92% chance of a 25-basis-point Fed rate cut at the end of the Fed's policy meeting on September 17, according to CME Group's FedWatch tool.
Non-yielding gold typically performs well in a low-interest-rate environment.
All focus is now on US non-farm payrolls data, due on Friday, for cues on the size of the Fed's potential cut.
Elsewhere, spot silver eased 0.2% to $40.83 per ounce, after hitting its highest point since September 2011 in the previous session. Platinum fell 0.8% to $1,391.80 and palladium slipped 0.4% to $1,138.78.
