Gold

Gold Rises to 2-Week High

Gold prices rose above $3,370 per ounce on Tuesday, reaching its highest level in two weeks amid heightened political uncertainty after President Donald Trump fired Federal Reserve Governor Lisa Cook. On Monday, Trump announced on social media that he was removing Cook, citing his administration’s allegations of mortgage fraud — a move that has fueled concerns over the US central bank’s independence. Meanwhile, Fed Chair Jerome Powell last Friday signaled a possible rate cut in September, highlighting growing risks to the labor market but also noting inflation remained a threat and that no decision has been finalized. Currently, markets are assigning an 83% probability of a 25bps rate cut next month. Investors are now awaiting Friday’s release of the PCE price index, the Fed’s preferred inflation gauge, for further clues on the trajectory of US monetary policy.

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