Gold prices edged higher in Asian trading on Tuesday as investors turned to safe-haven assets. The move came after President Donald Trump announced he was firing Federal Reserve Governor Lisa Cook, raising fresh concerns about the Fed’s independence.
A weaker dollar also gave gold and other metals support. Precious and industrial metals had seen volatile performance in recent sessions as traders remained uncertain about the future path of U.S. interest rates.
Spot gold gained 0.3% to $3,375.29 per ounce, while October gold futures rose 0.2% to $3,423.95 per ounce by 00:24 ET (04:24 GMT). Prices briefly touched a two-week high of $3,386.49.
Trump removes Fed Governor Cook
Trump said in a public letter that he was removing Cook immediately, citing allegations of mortgage fraud. He claimed he had “sufficient cause” to justify her dismissal.
Cook rejected the claims, arguing that the president had no legal authority to fire her. She stated she would continue serving on the Fed’s board.
This latest move marks Trump’s ongoing attempt to exert more influence over the central bank. Replacing Cook with his own nominee would strengthen his hand in the seven-member Fed board, where two of his picks—Christopher Waller and Michelle Bowman—already serve. Both supported a rate cut at the July Fed meeting, aligning with Trump’s push for lower rates.
Trump had also hinted at firing Fed Chair Jerome Powell after Powell resisted immediate rate cuts. However, Powell softened his stance last week, signaling the possibility of a September cut due to labor market weakness, though he remained cautious about further easing.
The repeated clashes have increased concerns about the Fed’s political independence. Economists warn that undermining the central bank’s credibility could hurt the U.S. economy in the long term. These concerns fueled demand for gold and other safe-haven assets.
Metals boosted by weaker dollar
Other precious metals also benefited from the weaker dollar. Platinum gained 0.1% to $1,346.40 per ounce, while silver climbed 0.7% to $38.85. Both metals have outperformed gold in recent months, as traders took advantage of earlier underperformance to enter the market.
Industrial metals extended gains as well. Benchmark copper futures on the London Metal Exchange rose 0.7% to $9,848.85 a ton, while COMEX copper futures increased 0.4% to $4.55 a pound. Copper had rallied strongly last week after Fed signals of possible rate cuts boosted risk appetite.
Overall, safe-haven demand, political tensions, and a softer dollar continued to support gold and metals in global markets.
