Gold prices edged lower on Wednesday after hitting a two-week high, as U.S. President Donald Trump’s attempt to remove Federal Reserve Governor Lisa Cook renewed concerns about the central bank’s independence.
At 08:25 ET (12:25 GMT), spot gold slipped 0.4% to $3,380.47 an ounce, while October gold futures eased 0.1% to $3,429.30 per ounce, retreating from this week’s peak levels.
Trump vs. the Fed
Gold’s rally earlier in the week was driven by safe-haven demand amid fears of a prolonged legal battle between Trump and Cook. Cook has refused to step down and vowed to challenge the dismissal in court, insisting Trump had no valid grounds for removal — a stance echoed by the Federal Reserve.
Trump’s move has raised broader concerns about political interference in the Fed, which has historically operated independently of the White House. Earlier this year, Trump also threatened to fire Fed Chair Jerome Powell, criticizing him for not cutting rates more aggressively.
If Cook were replaced with Trump’s nominee, it would give the president potential influence over a majority of the Fed’s seven-member board, allowing him to push through his calls for deeper interest rate cuts. Markets are watching closely, as the Fed has so far remained cautious on easing policy, warning of inflation risks tied to Trump’s tariffs.
Lower interest rates typically support gold and other precious metals.
Dollar recovery and metals retreat
The U.S. dollar rebounded on Wednesday, recovering earlier losses. Treasury yields also stabilized after spiking earlier in the week, adding pressure to metals.
Spot platinum fell 0.6% to $1,340.60 an ounce, while silver dropped 0.5% to $38.495 an ounce.
In industrial metals, benchmark London copper futures slipped 0.8% to $9,766.10 a ton, while COMEX copper futures fell 1.4% to $4.4703 a pound. Both contracts had rallied strongly last week on expectations of lower U.S. interest rates and fresh stimulus from China, the world’s largest metals importer.
