Gold Holds Gain After Trump Says Fed Governor Cook Should Quit
Gold held a gain after President Donald Trump’s call for a Federal Reserve governor to quit raised fresh concerns about the central bank’s independence, bolstering haven demand.
Bullion traded above $3,342 an ounce, after gaining nearly 1% following Trump’s demand that Lisa Cook resign over a mortgage fraud allegation. Should she quit, it would give the president an opportunity to appoint a more dovish governor. Still, Cook signaled her intention to remain at the central bank.
Looking ahead, traders will listen to Chair Jerome Powell’s keynote speech on Friday at the annual Jackson Hole gathering for clues about forthcoming decisions. Traders expect the Fed to cut interest rates by at least 25 basis points next month, which would be positive for gold as it doesn’t pay interest. The minutes from Fed policymakers’ meeting last month showed that officials highlighted inflation risks as outweighing concerns over the labor market.
The precious metal has rallied by more than a quarter this year, although the bulk of its advance was registered in the opening four months, when prices set a record. The metal has been supported by central-bank buying and inflows into exchange-traded funds, and many analysts including UBS Group AG’s weath-management arm have made the case that there’s scope for further gains.
“Prices will remain elevated in the coming weeks as the market braces for a US Fed rate cut in September,” Fitch Solutions’ BMI unit said in a note. “We expect gold to trade between $3,200 to $3,600 an ounce for the rest of 2025.”
Gold was little changed at $3,342.40 an ounce at 9:00 a.m. in Singapore. The Bloomberg Dollar Spot Index steadied. Silver, palladium and platinum were all flat.
Source: Bloomberg
