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2025.08.2602:05:56UTC+00Gold Rises to 2-Week High

Gold prices surged beyond the $3,370 per ounce mark on Tuesday, marking a two-week high, driven by increased political turbulence following President Donald Trump's dismissal of Federal Reserve Governor Lisa Cook. Trump's announcement came via social media on Monday, where he stated that Cook was being removed due to his administration’s allegations of mortgage fraud. This decision has sparked concerns about the autonomy of the US central bank. In parallel, last Friday, Federal Reserve Chair Jerome Powell indicated a potential interest rate cut in September due to mounting risks to the labor market, notwithstanding that inflation continues to be a concern and no final decisions have been made. Currently, the market is projecting an 83% chance of a 25 basis point rate cut next month. Investors now eagerly anticipate the release of the Personal Consumption Expenditures (PCE) price index on Friday, regarded as the Federal Reserve’s favored measure of inflation, for additional insights into the future direction of US monetary policy.

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