Trump–Fed Clash Pushes Gold Price Toward Record $3,500
Gold prices climb near $3,500 as Trump effort to remove Fed governor Lisa Cook raises concerns over central bank independence.
New York — Gold prices advanced on Friday, closing in on all-time highs as investors weighed U.S. inflation data against a deepening dispute over the Federal Reserve’s independence. The developments added a new layer of uncertainty that boosted demand for the metal as a traditional haven.
Spot gold rose 0.8% to $3,444.94 an ounce by late morning in New York, after reaching $3,446.27 earlier in the session. That leaves bullion less than $60 from April’s record of $3,500.10. The metal has gained more than 15% since the start of the year, supported by expectations of lower U.S. interest rates and sustained central bank buying.
The political backdrop weighed heavily on markets. A Washington judge is holding an emergency hearing on whether Fed Governor Lisa Cook can remain in her role after President Donald Trump moved to dismiss her — the first time a sitting president has attempted to fire a Federal Reserve board member. The outcome could influence confidence in the central bank’s independence, a principle seen as critical for controlling inflation and guiding monetary policy.
Meanwhile, fresh U.S. economic data highlighted the tension facing policymakers. The Fed’s preferred inflation gauge remained well above its long-term target in July, yet consumer spending increased at the strongest pace in four months. Traders continue to expect a rate cut in September, betting that slowing global growth and political turmoil will outweigh lingering price pressures.
Other precious metals posted mixed moves. Silver rose alongside gold, while platinum and palladium slipped. Analysts noted that strong bullion demand from Asian central banks and retail investors has provided an additional floor for prices, making the $3,500 level a key target for the market in the weeks ahead.
With investors balancing legal drama at the Fed, stubborn inflation, and the prospect of looser U.S. monetary policy, gold remains in focus as the preferred hedge against volatility.
Also Read: Traders Hold Gold at $3,320 Before Powell Speaks on Rates
