Gold Futures Hit Record $3,550 on Fed Dispute and Tariff Ruling

Gold futures surged to fresh record highs on Friday, driven by mounting doubts over the Federal Reserve’s independence, rising expectations of U.S. interest-rate cuts, and ongoing tariff and geopolitical uncertainty.

Continuous gold futures on the New York Mercantile Exchange gained 0.8% to $3,543.80 a troy ounce in European midday trading, after touching an intraday high of $3,557.10. The metal is now up more than 34% year-to-date, its strongest rally in decades.

Miners Rally on Record Gold Prices

Gold producers tracked the surge higher. Hochschild Mining rose 6.2%, Fresnillo gained 1.7%, and Harmony Gold added 4.6%. Analysts said the sharp move reflects growing safe-haven demand as investors hedge against political and economic instability.

Fed Concerns and Rate-Cut Bets

The rally follows in-line U.S. Personal Consumption Expenditure data for July, which showed consumer spending rose 0.3% month-on-month. Analysts said the figures reinforced expectations of a September rate cut, especially after Fed Chair Jerome Powell signaled openness to policy easing during his Aug. 22 Jackson Hole speech.

Lower interest rates generally boost gold’s appeal by reducing the opportunity cost of holding non-yielding bullion. Traders are now watching Friday’s August jobs report for further signals on the size and timing of potential cuts.

Trump vs. the Fed: Cook Controversy

Safe-haven buying accelerated after President Donald Trump moved to dismiss Fed Governor Lisa Cook over alleged mortgage fraud. Cook has filed a lawsuit to block her removal, leaving uncertainty over her status. A federal district court hearing on Friday offered no clarity, raising fresh doubts about the central bank’s independence.

“Challenges to Fed governance undermine market confidence and weaken the dollar, both of which tend to drive investors into gold,” analysts said.

Tariff Rulings Add to Dollar Weakness

An appeals court on Friday upheld a ruling that found key parts of Trump’s tariffs illegal. While the duties remain in place until mid-October pending litigation, the decision has cast doubt over the administration’s trade policy. The uncertainty weighed on the U.S. dollar, giving bullion another lift.

Geopolitical Flashpoints Sustain Safe-Haven Demand

Analysts at ANZ Research noted that geopolitical tensions continue to underpin gold’s strength. Russia and Ukraine have escalated strikes despite stalled peace talks, while Germany and France push for secondary sanctions on countries supporting Moscow’s war effort—including major buyers like China and India.

With no resolution in sight, investors are expected to keep turning to gold as protection against volatility.

Also Read: Trump–Fed Clash Pushes Gold Price Toward Record $3,500