Mubasher: Gold traded below its three-week high on Wednesday as investors locked in profits, yet the safe-haven metal remained supported as political concerns arose after the announcement of an official impeachment probe into President Donald Trump, according to Reuters.

By 9:44 am GMT, spot gold inched down by 0.05% to $1,531.04 per ounce, after hitting on Tuesday $1,535.60 per ounce, its highest level since 5 September, while US gold futures fell by 0.13% to $1,538.20 per ounce.

“Compounding into the macro weakness we have the tumult in political landscape brought about by the impeachment process,” AxiTrader market strategist Stephen Innes was quoted by Reuters.

Democrats in the US House of Representatives late Tuesday triggered a formal impeachment investigation into President Trump, accusing him of seeking to smear his rival Joe Biden ahead of 2020 election.

This could be a drag on the US dollar and stock markets, which in turn would boost the yellow metal, Innes said.

The US dollar index, which tracks the greenback against a basket of six major rivals, rose by 0.20% to 98.5350.

More support to gold came from weakening in the US consumer confidence, which further rasied worries about the global economic growth.

“It stoked Fed rate-cut speculation, driving down yields and thereby boosting the relative appeal of non-interest-bearing assets epitomised by gold,” DailyFx senior currency strategist Ilya Spivak was quoted by Reuters.

On the trade front, Trump’s rhetoric on China was tough anew on Tuesday as he criticised Beijing trade practices at the United Nations General Assembly, warning that he would not accept a “bad deal” in the trade negotiations.

Trump’s struck harsher tone even with steps by Beijing to meet his demand for more purchases of US farm products.

Negotiators from the world’s two biggest economies will meet once again in October.