Gold Hits Two-Week High as Dollar Weakens After Fed Shake-Up
Gold prices climbed to their highest level in two weeks on Tuesday, supported by a weaker dollar following President Donald Trump’s dismissal of Federal Reserve Board member Lisa Cook.
As of 00:55 GMT, spot gold rose 0.5% to $3,384.34 per ounce, the highest since August 11. U.S. gold futures for December delivery gained 0.4% to $3,432.40. The dollar index slipped 0.3% against a basket of major currencies, making gold more attractive to overseas buyers.
Trump’s decision marked a historic move, as Cook was the first African American woman to serve on the Federal Reserve Board. Reports linked her removal to alleged irregularities tied to two mortgage dealings, adding to political and institutional uncertainty.
Rising Rate-Cut Expectations
Fed Chair Jerome Powell recently signaled the possibility of an interest rate cut at next month’s policy meeting, citing growing risks in the labor market. According to CME’s FedWatch tool, traders now see an 83% probability of a quarter-point rate reduction at the September 17 meeting.
Lower interest rates typically boost gold, as they reduce the opportunity cost of holding the non-yielding metal.
Other Precious Metals
- Silver advanced 0.4% to $38.72 per ounce.
- Platinum gained 0.7% to $1,352.
- Palladium climbed 1% to $1,096.75.
