Gold prices rose in Asian trading on Tuesday, supported by safe-haven demand after concerns intensified over Federal Reserve independence following President Donald Trump’s announcement that he was firing Governor Lisa Cook.
A weaker dollar also boosted gold and other metal prices, which had been volatile in recent sessions amid uncertainty over the U.S. interest rate trajectory.
Spot gold increased 0.3% to $3,375.29 per ounce, while October gold futures added 0.2% to $3,423.95 per ounce by 00:24 ET (04:24 GMT). Spot prices briefly touched a two-week high of $3,386.49 per ounce.
Trump Moves to Remove Fed Governor Cook
In a public letter, Trump stated he was calling for Cook’s immediate removal, citing alleged mortgage fraud as sufficient cause.
Cook dismissed the allegations, saying Trump had “no authority” to fire her and that she would remain in her position.
The firing represents Trump’s latest challenge to the Fed as he seeks more sway over its rate-setting decisions. Replacing Cook with a nominee of his choice could increase his influence over the Fed’s seven-member board, which already includes two of his appointees—Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman.
Waller and Bowman both voted for a rate cut during the Fed’s July meeting, in line with Trump’s preferences.
Earlier, Trump had suggested he might remove Fed Chair Jerome Powell, after the chair largely rejected immediate rate cuts. Powell last week partially yielded, signaling a possible September rate reduction amid some labor market weakness, but he remained largely non-committal on further easing.
The president’s repeated attacks on the Fed have raised fresh concerns over central bank independence, potentially undermining long-term U.S. economic credibility. This uncertainty has driven safe-haven demand for gold and other precious metals.
Metal Prices Benefit from Dollar Weakness
Other metals also gained from dollar softness following Trump’s move, although the dollar index later recovered above 98 points.
Spot platinum rose 0.1% to $1,346.40 per ounce, while spot silver jumped 0.7% to $38.8525 per ounce. Both metals have outperformed gold in recent months, as investors sought opportunities in other precious metals after years of relative underperformance.
Among industrial metals, London Metal Exchange copper futures rose 0.7% to $9,848.85 per ton, and COMEX copper futures gained 0.4% to $4.550 per pound. Industrial metals rallied sharply last week following Fed signals of potential rate cuts, a trend that had delivered only modest gains to gold and other precious metals.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply