Gold prices advanced in Asian trading on Tuesday, underpinned by revived safe-haven demand after the U.S. President Donald Trump moved to dismiss Federal Reserve Governor Lisa Cook, raising fresh alarms over the independence of the world’s most influential central bank.
Spot gold crept 0.3% higher to $3,375.29 an ounce, while October gold futures increased 0.2% to $3,423.95 by 11.24 a.m. Bangkok time. Earlier, spot prices touched a two-week peak at $3,386.49 as the dollar retreated on the back of political controversy.
The dollar’s pullback, triggered by mounting uncertainty over the direction of Fed policy, also lent support across precious and industrial metals markets, offsetting recent volatility driven by rate speculation.
The latest tremor in financial markets came after Trump demanded Cook’s immediate ouster, citing allegations of mortgage fraud in an open letter. Cook denied the accusations and insisted the President lacks the authority to remove her, pledging to remain in her post.
The president’s move marks his most recent salvo against the Fed as he seeks greater sway over monetary policy, with the potential replacement of Cook threatening to tilt the balance of the seven-member board further towards his appointees. Two of Trump’s nominees—Christopher Waller and Michelle Bowman—recently voted for a rate cut at the Fed’s July meeting, aligning with the administration’s agenda.
Trump has previously threatened to oust Fed Chair Jerome Powell, although Powell last week opened the door to a possible rate cut in September amid cooling labor market data. However, Powell remains cautious about future easing and has avoided making firm commitments.
Trump’s renewed intervention has stoked concerns over the Fed’s credibility and long-term policy independence—an issue that could undermine global confidence in the U.S. economy. As a result, gold and other safe-haven metals saw inflows, with gains amplified by the softening dollar, which briefly dipped before rebounding above 98 points on the index.
